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HELLA To Take EUR 500 Mln Charges In Q4, Suspend Dividend

The German based automotive parts supplier HELLA GmbH & Co. KGaA (HLKHF) said it will recognize non-cash impairments of about 500 million euros in the fourth quarter.
The expected impairments mainly result from the considerably reduced market volume due to the COVID-19 pandemic.

HELLA has decided to propose to the Annual General Meeting on 25 September 2020 to suspend the dividend payment for the fiscal year 2019/2020, due to expected net loss for the current fiscal year and the negative market expectation.

For the fiscal year 2019/2020 , the company expects group sales to be in the range of about 5.7 billion euros to 5.8 billion euros and an adjusted operating profit margin of about 4 percent.

In mid-March 2020, HELLA had already announced that the massive economic consequences of the COVID-19 pandemic could not be fully compensated for and that the originally planned targets for the current fiscal year would probably not be achieved.

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