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Airbus Withdraws FY20 Outlook, Dividend Proposal Amid COVID-19

European plane maker Airbus SE (EADSF.PK,EADSY.PK) announced Monday its decision to withdraw fiscal 2020 guidance and 2019 dividend proposal due to the worsening COVID-19 pandemic.

The company also announced new 15 billion euros credit facility as part of its measures to bolster its liquidity and balance sheet in response to the coronavirus.

In mid-February, the company had said it targets around 880 commercial aircraft deliveries, and to deliver an Adjusted EBIT of approximately 7.5 billion euros in fiscal 2020.

The company now said the withdrawal of its guidance reflects the limited visibility due to the evolving COVID-19 situation.

Further, Airbus said its management has received approval from the Board of Directors to secure a new credit facility amounting to 15 billion euros in addition to the existing 3 billion euros revolving credit facility.

The company also would withdraw the 2019 dividend proposal of 1.80 euros per share with an overall cash value of approximately 1.4 billion euros. Airbus further plans to suspend the voluntary top up in pension funding.

The company added that operational scenarios, including measures to minimise cash requirements, have been identified and will be activated depending on the further development of the pandemic.

Airbus has convened its 2020 Annual General Meeting in Amsterdam on April 16. Due to the global outbreak of COVID-19, Airbus strongly encourages shareholders to vote by proxy in line with public health and safety measures.

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