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Nemak approves cancellation of dividends
Monterrey, Mexico. June 19, 2020. — Nemak, S.A.B. de C.V. ("Nemak" or "the Company") (BMV: NEMAK), a leading provider of innovative lightweighting solutions for the global automotive industry, held today a General Shareholders’ Meeting at which it approved the recommendation of its Board of Directors to cancel the remaining dividend payments decreed at its Annual General Shareholders’ Meeting on February 25.
The spread of COVID-19 has had a substantial impact to-date on global light-vehicle sales and production levels, which in turn has weighed on demand for the Company’s products. In response to these conditions, Nemak has executed a series of measures to safeguard the well-being of its people and ensure business continuity. These have included health protocols; operational efficiencies to optimize costs, expenses, and cash flow; and the use of credit lines to reinforce its liquidity position, among others.
Given the above-mentioned effects, today the Company approved the cancellation of its dividend payments scheduled for July 1, October 1, and December 18 of the present year. With these actions, Nemak reiterates its commitment to continue working towards protecting the health of its people, maximizing shareholder value, and maintaining financial resilience during these extraordinary times.
Nemak is a leading provider of innovative lightweighting solutions for the global automotive industry, specializing in the development and manufacturing of aluminum components for powertrain, emobility, and structural applications. In 2019, it generated revenue of US$4.0 billion. For more information about Nemak, visit www.nemak.com