Schneider Electric to sell Russian ops to local management
Apr 28, 2022
Schneider Electric has signed a letter of intent to offload its Russian division to local management, writing off up to €300 million ($315 million) in net book value as a result. Jean Pascal Tricoire, CEO at the France-based UPS manufacturer, said it suspended all new investments in Russia after the invasion of Ukraine on February 24 and had concluded the best option was to sell country operations. He said Schneider Electric decided "from the beginning that the best owners of our business would be the local leadership team." "At this stage, we signed the LOI defining the specs on the main conditions of that transfer, we still have to go to a closing and that will go through the regulatory approvals in Russia." Schneider Electric has 3,500 employees in Russia and its puppet state Belarus, and the countries accounted for 2 percent of the €28.9 billion in sales turned over in 2021. Three factories and two distribution centres are run in Russia as well, Tricoire confirmed. "There is close to no export or supply chain sourcing from Russia, and certainly no critical components coming from from Russia," the CEO said. CFO Hilary Maxson, also on the same conference call to discuss Schneider's calendar Q1 financial results , said the target is to get the sale done by June but said that with local approval required by authorities predictions are difficult. "This is a 100 percent sale of our Russian entities. As would be typical through any disposal process, we would expect to have a number of transition services agreements, in this case, also covering some of the legally binding projects that aren't subject to sanctions that we have there today." Within 12 to 18 months Schneider said it would expect to "have no longer any contractual relationships" with entities in Russia. The financial impact in terms of earnings before income tax, depreciation and amortization and is modeled to be €300 million ($315 million) in net book value and €120 million ($126 million) non-cash reversal of currency translation reserve. Multitude tech brands in the West have take action in Russia following sanctions imposed on the country by the US, EU and UK. Many have at least halted sales, and some have suspended operations. Ericsson , which had an R&D centre in Russia, has pulled out "indefinitely." Inside Russia, tech companies are dealing with the aftershocks caused by these economic penalties: Yandex, which last week shredded financial guidance for 2022 , this week confirmed net losses of 8.1 billion roubles ($111 million) for Q1. In the whole of 2021 it made 8 billion roubles ($109 million). Yandex said everything in its business was "stable" until soldiers marched into Ukraine. "In the last five weeks of the first quarter, our operations in certain businesses were adversely affected by the impact of geopolitical developments, which is reflected in our results for the first quarter." ®
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The government combats the extremists with security operations and efforts to advance development of the 70 areas identified as hotbeds of Maoist insurgency. It's felt that insurgents want locals to feel under-appreciated by Delhi, and impoverished compared to those in other regions, as doing so will create sympathy for their cause. If you want to place a bet on the winner of 2022's weirdest corporate rebranding, here's one likely to make the shortlist: an announcement titled "Accenture Announces Accenture Song" . No, dear reader, that missive does not mean that Accenture has penned a corporate anthem. Which is a shame because The Register quite fancies the notion that the consulting firm's ~700,000 employees might be asked to start their working days with a rousing rendition of a company song, hands on hearts, before turning their minds to value-adding strategic consultancy. Rather, the title serves to announce that Accenture Interactive – the limb of the organisation dedicated to technology implementation – has renamed itself Accenture Song. Security flaws in Log4j, Microsoft Exchange, and Atlassian's workspace collaboration software were among the bugs most frequently exploited by "malicious cyber actors" in 2021 , according to a joint advisory by the Five Eyes nations' cybersecurity and law enforcement agencies. It's worth noting that 11 of the 15 flaws on the list were disclosed in 2021, as previous years' lists often found miscreants exploiting the older vulns for which patches had been available for years. Of course, the US Cybersecurity and Infrastructure Security Agency (CISA) and friends note that malicious cyber actors have not stopped trying to exploit older flaws – but reckon those efforts are happening to a "lesser extent" than in the past. Flaws in networkd-dispatcher, a service used in some parts of the Linux world, can be exploited by a rogue logged-in user or application to escalate their privileges to root level, allowing the box to be commandeered, Microsoft researchers said Wednnesday. It's nice of Redmond to point out these flaws and have them fixed in any affected distributions; the US tech giant is a big user of Linux and relies on the open-source OS throughout its empire. It's just a little perplexing the biz went to all the effort of a big write-up and giving the flaws a catchy name, Nimbuspwn, when countless privilege-elevation holes are fixed in the Windows operating system each month, and we can't recall Microsoft lately making this much of a song and dance over them. 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