March 23, 2020 / 7:13 AM / 13 days ago

BRIEF-Electrolux Cancels Dividend, Updates On Coronavirus Impact

March 23 (Reuters) - Electrolux AB:

* AB ELECTROLUX UPDATES EXPECTED IMPACT FROM THE CORONAVIRUS AND CANCELS DIVIDEND

* SAYS BOARD OF DIRECTORS OF AB ELECTROLUX HAS DECIDED TO WITHDRAW ITS DIVIDEND PROPOSAL TO ANNUAL GENERAL MEETING 2020

* SAYS GIVEN SEVERITY OF SITUATION, INCLUDING LARGE ORDER REVISIONS FROM RETAILERS IN RECENT DAYS, ELECTROLUX EXPECTS A MATERIAL FINANCIAL IMPACT IN 2020, STARTING IN Q1

* SAYS IN EVENT THAT GLOBAL SITUATION AND MARKET CONDITIONS ARE STABILIZED DURING YEAR AND COMPANY’S FINANCIAL POSITION REMAINS GOOD, BOARD OF DIRECTORS WILL CONSIDER CALLING AN EXTRAORDINARY GENERAL MEETING LATER THIS YEAR IN ORDER TO RESOLVE ON A DIVIDEND.

* SAYS IT IS NOT AT THIS POINT POSSIBLE TO QUANTIFY OR PREDICT FULL IMPACT AND ELECTROLUX IS NOW IMPLEMENTING AGGRESSIVE MITIGATION ACTIONS TO REDUCE RISK TO EARNINGS AND CASH FLOW

* SAYS IN ADDITION TO FURLOUGHS FOR EMPLOYEES AFFECTED BY REDUCED ACTIVITY, THESE ACTIONS INCLUDE SIGNIFICANTLY REDUCED DISCRETIONARY SPENDING AND REPRIORITIZING CAPITAL EXPENDITURE

* SAYS BOARD INSTEAD PROPOSES THAT NO DIVIDEND IS DISTRIBUTED TO SHAREHOLDERS FOR FISCAL YEAR 2019 Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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