March 23, 2020 / 7:30 AM / 14 days ago

Electrolux pulls proposed dividend due to coronavirus hit

FILE PHOTO - Interiors of Electrolux R&D facility are pictured at their plant in Pordenone, Italy, March 27, 2019. REUTERS/ Giulio Piovaccari

STOCKHOLM (Reuters) - Swedish home appliance maker Electrolux (ELUXb.ST) said on Monday it had decided to withdraw its proposed dividend for 2019 and was taking action to protect earnings and cash flow due to the effects from the coronavirus spread.

“Electrolux has a solid balance sheet, but this is an extraordinary situation and the Board believes it is appropriate to take a prudent approach at this point in order to ensure the company continues to be well-positioned for the future,” Chairman Staffan Bohman said in a statement.

The company said the severe coronavirus situation, including large order revisions from retailers in recent days, made it expect a material financial impact in 2020, starting in the first quarter.

Reporting by Johannes Hellstrom; editing by Niklas Pollard

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