Swedish Boliden foresees profit hit due to extended strikes in Finland

Boliden, a Sweden-based metals company, is bracing for a significant impact on its Q1/24 profit, estimated at around 500 mill. SEK (43.5 mill. EUR), due to prolonged industrial strikes in Finland.

The company attributes this financial setback to a combination of reduced production and delayed deliveries, with the extension of the strike further exacerbating the situation.

Initially, Boliden had anticipated a loss of SEK 300 million (EUR 26.1 million) for the quarter, stemming from the scheduled strike action slated for March 11-25. However, the strikes have been extended to April 1, compelling the company to adjust its financial outlook. The extended industrial action, protesting against government labor reforms and welfare cuts, has led to continued national port closures and disruptions in freight traffic, severely affecting Boliden's operations.

The revised estimate indicates a 67% greater impact on the company's first-quarter operating profit than previously expected. Of the SEK 500 million (EUR 43.5 million) impact, SEK 200 million (EUR 17.4 million) is attributed to decreased production, while SEK 300 million (EUR 26.1 million) results from postponed customer deliveries. This situation has particularly hindered Boliden's access to essential infrastructure, including railways and harbors, crucial for the supply chain of its three Finnish operations. Continue Reading? Please click box below!