Swedish group Hoganas makes 65 mln SEK provision


STOCKHOLM, May 24 (Reuters) - Metal powders group Hoganas said it would make a 65 million Swedish crown ($8.9 million) provision for value-added tax in its Brazilian unit, of which 43 million crowns would be charged to operating income.

"The majority of this provisioning relates to value-added tax on importing machinery to Brazil during the building up of local operations after their acquisition in 1999," the group said in a statement on Wednesday.

"The majority is due to the forwarding agent appointed for importing the machinery not paying the value-added tax, despite Hoganas paying it in advance," it said.

"Of the 65 million crown provision, 43 million will be posted to operating income and 22 million to net interest income/expenses," it added.

The group is the largest manufacturer of metal powders, which are used in the auto industry.



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