Kingscourt, Ireland – Kingspan has withdrawn its proposed dividend and is cutting wages of staff by 40-50% to help it get through the coronavirus slowdown, according to media reports.
Kingspan cuts wages by 40%-50% cancels 2019 dividend
The company announced that it was withdrawing its EUR 0.33/share dividend proposal from the AGM on 19 March. At the time, the company said it has 'in excess of EUR 1bn in aggregate cash balances on hand, committed undrawn bank facilities and maintains a strong balance sheet.'
Withdrawing the dividend should save the company around EUR 60m.
Directors are taking a 50% pay cut in April and May, while staff will see their wages shrink by 40% for the two months. In 2019, the company paid EUR 615m in wages and a further EUR 98m in welfare and pension costs.
Gene Murtagh has told staff that 'we must act immediately to protect the long-term future of all our people and pull together to get through this crisis and get back to the strong business we have all worked so hard to build. He added that the cuts would be applied 'without exception.'