March 25, 2020 / 12:09 PM / 8 days ago

BRIEF-Beijer Electronics Revises Dividend Proposal, Reduces Staff

March 25 (Reuters) - Beijer Electronics Group AB:

* BEIJER ELECTRONICS GROUP TAKES PREVENTIVE MEASURES, REVISES DIVIDEND PROPOSAL AND DEFERS AGM

* SUPPLY CHAIN DISRUPTIONS THAT OCCURRED DUE TO CHINA’S ACTIONS AGAINST SPREAD OF CORONAVIRUS IN EARLY MONTHS OF YEAR HAVE GRADUALLY IMPROVED.

* GROUP HAS DECIDED TO EXECUTE A PROGRAM OF MEASURES THAT INVOLVES DOWNSIZING STAFF BY ABOUT 40 PEOPLE IN KORENIX AND BEIJER ELECTRONICS BUSINESS ENTITIES

* TO EXECUTE A PROGRAM OF MEASURES THAT INVOLVES DOWNSIZING STAFF BY ABOUT 40 PEOPLE IN KORENIX AND BEIJER ELECTRONICS

* MOST OF THESE LAY-OFFS ARE IN TAIWAN, WITH SOME IN SWEDEN.

* EXPENSES FOR PROGRAM ARE 15 MSEK,

* ESTIMATED SAVINGS ARE 25-30 MSEK IN 2020, AND THEN 40-45 MSEK ANNUALIZED.

* EXPENSES FOR PROGRAM ARE 15 MSEK, WHICH WILL BE CHARGED TO EARNINGS FOR Q1 2020. ESTIMATED SAVINGS ARE 25-30 MSEK IN 2020, AND THEN 40-45 MSEK ANNUALIZED

* WILL ALSO BE TAKING A NUMBER OF ACTIONS ENABLED BY DIFFERENT AUTHORITIES’ PROGRAMS FOR BUSINESS COMMUNITY IN VARIOUS COUNTRIES

* WILL ADAPT ITS COST LEVELS TO PREVAILING MARKET CONDITIONS

* BEIJER GROUP’S BOARD OF DIRECTORS HAS ALSO DECIDED TO PROPOSE A DIVIDEND OF 0 SEK PER SHARE TO AGM 2020 FOR FINANCIAL YEAR 2019

* REVISED DIVIDEND PROPOSAL WILL HELP IMPROVE CASH FLOW IN FIRST HALF-YEAR 2020.

* DECIDED TO PROPOSE A DIVIDEND OF 0 SEK PER SHARE TO AGM 2020 FOR FINANCIAL YEAR 2019

* REVISED DIVIDEND PROPOSAL WILL HELP IMPROVE CASH FLOW IN FIRST HALF-YEAR 2020.

* NOT MAKING ANY ESTIMATES REGARDING UNDERLYING FINANCIAL PERFORMANCE FOR FULL YEAR 2020 Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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