Sweden's Sandvik withdraws dividend proposal

STOCKHOLM (Reuters) - The board of metal-cutting tools and mining gear maker Sandvik's <SAND.ST> said on Tuesday it would withdraw its dividend proposal for 2019 and instead proposed no pay out given the current uncertainty around the spread of the new coronavirus.

"Sandvik has a solid balance sheet and, as earlier announced, prompt actions are being implemented to mitigate future financial impact from the COVID-19-pandemic", it said in a statement.

"However, in the view of the increased economic uncertainty,and as a precautionary measure, the board believes that it is justified to withdraw the dividend proposal".

The board said it intended to re-evaluate the situation,

"when the market has stabilized and the financial position of the company so permits".

On March 26, Sandvik's board reduced its 2019 dividend proposal to 3 crowns per share versus 4.50 crowns previously.

(Reporting by Johannes Hellstrom; Editing by Simon Johnson)