20/03/2020

20 March 2020
20 March 2020, Comments Comments Off on Dometic withdraws dividend proposal due to Coronavirus outbreak
Dometic withdraws dividend proposal due to Coronavirus outbreak

The Board of Directors of Dometic Group AB has resolved to withdraw its dividend proposal before the Annual Shareholders’ Meeting 2020. It has made this decision because of the current uncertainty due to the global outbreak of the new coronavirus (Covid-19) and the negative effects on the world economy that are expected.

With an increasing number of countries closing their borders, the spread of Covid-19 impacts markets where Dometic has presence in terms of production and sales. The rapidly changing market situation at the moment 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. The Board of Dometic has decided that the previously communicated dividend proposal 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.