STOCKHOLM, Sept. 25, 2020 /PRNewswire/ -- After assessing
the company's financial position and the impact of the coronavirus
pandemic, the Board of Directors of AB Electrolux has decided to
propose a dividend of SEK 7 per share
for the fiscal year 2019. Electrolux has seen a substantial
recovery in earnings and cash flow during the third quarter, with
pent-up demand and government stimulus programs impacting consumer
spending patterns and thus driving a positive development in all
business areas.
On March 23, 2020, the Board of
Directors withdrew its SEK 8.50 per
share dividend proposal for the AGM 2020, in light of the then
considerable uncertainty relating to the medium-term effects of the
pandemic. Since then however, as was communicated in the second
quarter report on July 17, market
demand has begun to recover. In line with the outlook, demand has
remained strong during the third quarter. Electrolux estimates that
the negative impact initially seen related to the pandemic will
largely be recovered in the operating profit for the nine-month
period ending September 30, including
a strong improvement in cash flow. Looking into the fourth quarter,
visibility remains limited as demand may be impacted by several
factors - both positive and negative - but at present, Electrolux
anticipates financial performance to gradually normalize.
The Board of Directors therefore has concluded that a dividend
can be proposed without jeopardizing Electrolux financial position.
It will call for an Extraordinary General Meeting on November 3, 2020, to decide on a proposal for a
dividend for the fiscal year 2019 of SEK
7 per share, to be paid in one installment. The Board will
also propose that a performance based long-term share program for
2020 is implemented in line with its original proposal for the AGM
2020.
The Extraordinary General Meeting will also decide on a proposal
from the Board of Directors to include a possibility in the
Articles of Association to allow voting by post and to collect
proxies before general meetings. Further details regarding the
Extraordinary General Meeting will be provided shortly in a
separate notice for the meeting.
Electrolux report for the third quarter of 2020 will be
published on October 23, 2020 at
about 0800 CET. The company will then
provide an updated market and business outlook for the full year
2020.
This is information that AB Electrolux 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 0830 CET on September 25, 2020
For further information, please
contact:
Daniel Frykholm
Electrolux Press Hotline
+46 8 657 65 07
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SOURCE Electrolux