Sandvik withdraws dividend proposal

The board of metal-cutting tools and mining gear maker Sandvik’s said on Tuesday it would withdraw its dividend proposal for 2019 and instead proposed no pay out given the current uncertainty around the spread of the new coronavirus.

“Sandvik has a solid balance sheet and, as earlier announced, prompt actions are being implemented to mitigate future financial impact from the COVID-19-pandemic”, it said in a statement.

“However, in the view of the increased economic uncertainty, and as a precautionary measure, the board believes that it is justified to withdraw the dividend proposal”.

The board said it intended to re-evaluate the situation, “when the market has stabilized and the financial position of the company so permits”.

On March 26, Sandvik’s board reduced its 2019 dividend proposal to 3 crowns per share versus 4.50 crowns previously.

(By Johannes Hellstrom; Editing by Simon Johnson)