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March 23, 2020, 2:29 a.m. EDT

Airbus scraps guidance, dividend, seeks financing

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By Cristina Roca

Airbus SE on Monday withdrew its 2020 guidance and scrapped its dividend proposal for 2019 as it moved to secure additional financing to help it face the situation created by the coronavirus pandemic.

Airbus' board of directors has approved the securement of a new credit facility amounting to 15 billion euros ($16.04 billion), bringing the plane maker's available liquidity up to about EUR30 billion.

Its 2019 dividend proposal of EUR1.80 a share, which a total cash value of about EUR1.4 billion, has been withdrawn.

Airbus also suspended the voluntary top up in pension funding and said it has identified operational scenarios including measures to minimize cash requirements, and that these will be activated depending on how the pandemic develops.

The European company scrapped its 2020 guidance, saying the virus has made the situation volatile.

"By maintaining production, managing its resilient backlog, supporting its customers and securing financial flexibility for its operations, Airbus intends to secure business continuity for itself even in a protracted crisis," the company said.

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