In light of Group operations which are – or will be – temporarily closed, the Board of Directors will withdraw its proposal foran extra shareholder dividend given the significant changes in the business environment since announcing 2019 financial results

In light of the general uncertainty and the measures taken to slow down the spread of Covid19 and their effects on the Volvo Group, the Board of Directors of Sweden’s AB Volvo Group announced today that it will maintain the proposal of an ordinary dividend of SEK 5.50 per share, but withdraw the proposal of an extra dividend of SEK 7.50 per share at the company’s upcoming Annual General Meeting on April 8, 2020

The statement went on to say, “The Volvo Group has a strong financial position and good liquidity, but since the Board of Directors submitted its original dividend proposal the business environment has changed significantly. Many of the Group’s operations are, or will be, temporarily closed and it is currently not possible to assess the duration. In order to ensure that the Volvo Group can act from a position of strength in the current turbulent environment, the Board considers that it is prudent to maintain the proposal for the ordinary dividend, but withdraw the proposal for an extra dividend.”

Earlier this week, the Group issued a statement on the impact of Covid-19, stating that there is a “considerable risk of material financial impact on the Group as from mid-March.”

In January, the Volvo Group announced net sales growth for 2019 of 11% to SEK 432 billion (€41 bn) for the company overall. Net sales in the Volvo Penta marine division were SEK 13.3 billion (€ 1.26bn), level with the previous year.

Volvo Penta operates in two business sectors: Marine (leisure and commercial) and Industrial (off-road and power generation).  Marine engine sales totalled 18,135 units, compared to 39,459 total units for the Division – and excluding outboard engines.