Beer can maker Ball Corporation loses $435M due to exit from Russia
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The suspension of investments in the Russian Federation and the sale of the Russian business led to the depreciation of the assets of the American manufacturer of aluminum packaging Ball Corporation. AT report in Q2 2022, the company reported an impairment loss on local business of $435 million.
“Ball has suspended investments in Russia and is in the process of selling its local aluminum beverage packaging business… As a result, the company performed an expected cash flow analysis to assess the fair value of long-term assets and recorded an impairment loss of $435 million,” the document reads. .
The company also indicated that the Russian market in 2021 accounted for about 4% of all net revenue and 8% of all operating profit. During this period, Ball’s Russian enterprises produced more than 5.6 billion cans.
Ball reported on the reduction of Russian operations and the search for a buyer of local business in March 2022
May 20 also the American manufacturer of aluminum products Arconic Corporation announced on the decision to sell the Russian business. Arconic explained that the company conducted a thorough analysis of strategic alternatives “in light of the restrictions imposed on operations by the Russian government and as a result of the ongoing litigation with the Federal Antimonopoly Service (FAS) of Russia.” The report says the conflict in Ukraine has rendered Arconic’s operations in Russia untenable. As a result, the company expects losses related to the sale of the Russian business to be up to $500 million.
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