Reportedly, in US civil operations, the project write downs are mainly due to not achieving estimated production rates and projects being delayed.
In the UK operations, the project write downs are mainly due to not achieving estimated production rates, projects being delayed with estimated penalties and multiple changes driven by clients causing cost overruns.
The company would write down
some EUR5m of certain real estates which are currently not used for production, and would write down
other non-recurring items worth some EUR7m related to the rationalisation programmes of Raisio Chemicals and Raisio Nutrition and due to the decision to close down the grain starch operations.
FSA director General Ulrik Noedgaard said that the move would prevent some banks from undertaking 'an optimistic approach' to write downs
Israel Discount Bank (TASE: DSCT) and Bank Hapoalim (LSE: 80OA; TASE: POLI) could face write downs
because of changes in the book values of companies in which they have a stake.
The bank has recorded a temporary write down
of USD143m on the MBS portfolio in 2007, and also reported an additional write down
of USD709m in April.