General dividend policy
We have generally pursued an earnings-oriented dividend policy since the IPO in 2006. Accordingly 30% of the Group's net earnings after deduction of special items are expected to be distributed to shareholders. We complied with this goal in 2006 and 2007 by distributing 80 Euro cents per share each year. The sharp drop in the Group's net earnings expected for the whole of 2009 will have a corresponding impact on the dividend proposal for the 2009 fiscal year.
The sharp drop in the Group's net earnings for 2009 has an impact on the dividend proposal
Due to the negative result of the fiscal year 2009 as a result of the financial crisis, Management Board and Supervisory Board propose not to pay a dividend to the Annual General Meeting on May 26, 2010.
Focus on safeguarding liquidity - dividend payment suspended for fiscal year 2008
Klöckner & Co SE has responded decisively and rapidly to the impact of the economic and financial crisis. Strengthening the Group financially is one of our goals. In order to ensure available liquidity, the Management Board proposed to suspend the dividend for 2008 to the Annual General Meeting on May 26, 2009. The Annual General Meeting accepted the proposal. As a result the net earnings of €17.7 million available at the end of 2008 were carried forward in full to the new account. No dividend was paid for the 2008 fiscal year.
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