Dyckerhoff to take impairment charge on Russian project

German cement major said it is to take an impairment charge of approximately EUR26m on fixed assets due to a cement project in Russia that was halted in 2009.
 
Due to the impact of the global financial crisis, Dyckerhoff stopped construction of the new plant and construction has not resumed to-date. Following an extensive analysis conducted by the company, Dyckerhoff has said that construction of the project at the planned location “is not assured in the foreseeable future.” Therefore an impairment of EUR26m on the fixed assets is required, it said in a statement.
 
Dyckerhoff has reiterated that sales and EBITDA group for fiscal year 2012 will be similar to the previous level. However, EBIT will be below 2011 figures. In addition, results after tax will be affected by a write-down on deferred tax assets to the tune of EUR13m.
 
These write-downs are non-cash items and, therefore, they do not affect the expected operating cash flow and the net financial position for the fiscal year 2012.