The Board of Directors withdraws its dividend proposal before the Annual Shareholders’ Meeting 2020 due to the impact of the coronavirus outbreak
As a consequence of the current uncertainty due to the global outbreak of the new coronavirus (Covid-19), the Board of Directors of Dometic Group AB (publ) has resolved to withdraw its dividend proposal before the Annual Shareholders’ Meeting 2020.
As a result of the global outbreak of the new coronavirus (Covid-19), and an increasing number of countries closing their borders, negative effects on the world economy are expected. The spread of Covid-19 impacts markets where Dometic has presence in terms of production and sales. The rapidly changing market situation, due to the spread of the corona virus, has had a negative impact on the demand of Dometic’s products in the first quarter. Dometic estimates that demand also in the second quarter will be negatively affected due to the uncertain situation and expected challenging market conditions.
Dometic is taking considerable measures to mitigate the effects, such as capacity adjustments, cost reductions, use of government support programs and reduced capital expenditure to maintain financial stability.
Currently it is not possible to quantify the financial effects thereof given the exceptional and uncertain market conditions. It is the Board’s assessment that the previously communicated dividend proposal, as set forth in the notice to the annual shareholders’ meeting, is under the prevailing circumstances no longer justifiable as the company and the group may need increased financial preparedness going forward. The Board has therefore decided to withdraw its dividend proposal. In the event that market conditions stabilize during the year and that the company's financial position allows, the Board may later in the year convene an extraordinary shareholders´ meeting in order to decide on a dividend.
This information is information that Dometic Group 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 below, at 10:10 am CET on March 20, 2020.
FOR FURTHER INFORMATION, PLEASE CONTACT
Johan Lundin, Head of Investor Relations & Communications
Phone: +46 8 501 025 46,
Dometic is a global market leader in branded solutions for mobile living in the areas of Food & Beverage, Climate, Power & Control and Other Applications. Dometic operates in the Americas, EMEA and Asia Pacific, providing products for use in recreational vehicles, pleasure and workboats, trucks and premium cars and for a variety of other uses. Our motivation is to create smart and reliable products with outstanding design. We sell our products in approximately 100 countries and we have a global distribution and dealer network in place to serve the aftermarket. Dometic employs approximately 7,200 people worldwide, had net sales of approximately SEK 18.5 billion in 2019 and is headquartered in Stockholm, Sweden.