Bulten’s Board of Directors withdraws proposal for a dividend of SEK 4.00 per share and take measures to mitigate the impact of Covid-19
In recent weeks, Covid-19 has had a significant impact on Bulten's deliveries, which will have a negative impact on earnings in the first quarter. To mitigate the impact, the company is taking measures, including short-term layoffs in Europe. Furthermore, the Board of Directors has decided to withdraw the previously communicated proposal to the Annual General Meeting 2020 of a dividend of SEK 4.00 per share, totaling approximately SEK 84 million.
Given the uncertain situation, it is currently not possible to estimate the full potential impact for Bulten in the coming quarters, but there is a significant risk of negative financial impact on the Group. Meanwhile, Bulten's management is working to mitigate the impact wherever possible. Measures taken include, among other things, short-term layoffs at Bulten's units in Europe, where Bulten intends to use the support packages that are fully or partially financed by the authorities in the countries concerned. Furthermore, Bulten follows the situation closely and has a close dialogue with business partners in order to act quickly.
In light of the uncertain situation, Bulten’s Board of Directors has decided to withdraw previously communicated dividend proposal to the Annual General Meeting 2020 of SEK 4.00 (4.00) per share and will instead propose to the Annual General Meeting that no dividend be paid. The Board of Directors is of the opinion that in the current situation it is important that the company's solidity and financial position is as good as possible for potential future challenges and opportunities.
For further information, please contact:
Anders Nyström, President and CEO
Tel: + 46 (0)31-734 59 00, e-mail: corporatecommunications@bulten.com
This information is information that Bulten AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 20:15 CET on 24 March 2020.
Bulten AB (publ) is one of the leading suppliers of fasteners to the international automotive industry. The company’s product range includes everything from customer-specific standard products to customized special fasteners. The company also provides technical development, line-feeding, logistics, material and production expertise. Bulten offers a Full Service Provider concept or parts thereof. The company was founded in 1873, has some 1,400 employees in eight countries and head office in Gothenburg. In 2020, Bulten acquired PSM, a fastener supplier with 350 employees. The share (BULTEN) is listed on Nasdaq Stockholm. Read more at www.bulten.com.
