European aviation titan Airbus stated Monday it could withdraw the planned dividend cost for 2019 and likewise abandon its earnings forecasts for the present 12 months due to the financial uncertainty triggered by the coronavirus pandemic.
And as part of measures to strengthen the group’s liquidity and books in response to the COVID-19 epidemic, Airbus would further cancel the 2019 dividend proposal of 1.80 euros a share with a total cash worth of roughly 1.4 billion euros” ($1.5 billion), the statement mentioned.
To make sure Airbus’s financial flexibility, the board of directors had agreed to secure a brand new credit facility amounting to 15 billion euros in addition to the present 3.0-billion-euro revolving credit facility, the assertion continued.
With these decisions, Airbus would have “significant liquidity available to deal with additional cash requirements related to the pandemic. Available liquidity now amounts to roughly 30 billion euros.”
Airbus is scheduled to hold its yearly shareholders meeting in Amsterdam on April 16; however, it was discouraging physical attendance because of the pandemic.
The group had already declared on Sunday that it planned to partially resume manufacturing and assembly work at its factories in France and Spain following four days of health and safety checks.
Last year, Airbus, which employs a global workforce of 135,000, made revenues of nearly 70 billion euros.