STOCKHOLM, March 26 (Reuters) - Swedish mining gear and metal-cutting tools maker Sandvik on Thursday launched large cost-cutting measures in response to the rapid global spread of the coronavirus and said it would reduce its proposed dividend for 2019.
“The coronavirus situation has escalated around the world and we have to adapt to this dramatic change in global business conditions, Sandvik CEO Stefan Widing said in a statement.
The company said temporary short-term actions primarily related to reduced working hours was seen generating savings of about 1.5 billion crowns ($148 million) this year.
Long-term structural measures were at the same time seen creating savings of about 900 million crowns, with the full annual run-rate by the end of 2021.
Sandvik’s board said it now proposed a 2019 dividend of 3 crowns per share versus the previous proposal of 4.50 crowns. ($1 = 10.1407 Swedish crowns) (Reporting by Johannes Hellstrom; editing by Simon Johnson)