Battery and automotive component manufacturer Metair has closed most of its operations as containment measures against the Covid-19 pandemic accelerate across the globe.
The company said on Monday (March 30) that most of its operations were closed owing to declared lockdowns and/or customer demand declines.
Metair noted that Dynamic, its business in the UK, was providing essential services only. Möll, in Germany, was closed.
ABM, in Kenya, was operational, but with strict social distancing measures in place.
Rombat, in Romania, was closed.
Multu Akü, in Turkey, was operating at 50% capacity, with strict social distancing measures in place.
All businesses in South Africa were closed.
As for employees, Metair said the company had been able to formulate employee welfare measures for the current phase of closures and lockdowns affecting its operations, owing to salary sacrifices by employees, as well as government support in all of the countries in which Metair operated.
“The extent and duration of the measures will be reviewed on a continuous basis”.
As far as the business was concerned, Metair noted that management had conducted a business review for various trading scenarios for the remainder of the year.
“All capital allocation decisions and priorities have been reviewed to delay capital outflows in order to preserve cash, while maintaining operational readiness and employee support and wellness.”
Metair said the company had sufficient liquidity and facilities to operate.
However, in light of the current “abnormal circumstances”, the company had considered it prudent to postpone the payment of the announced cash dividend of 120s a share for the year ended December 31.
Information on the revised dividend dates will be communicated to shareholders in August.
Metair also noted that the company’s earnings a share and headline earnings a share for the six months ended June 30 would reduce by at least 20% compared with the previous corresponding period, in light of the “devastating economic impact, weakened trading conditions and extraordinary cost related to Covid-19”.