Business & Finance
Össur withdraws guidance for 2020 due to COVID-19 outbreak; Share buyback temporarily suspended
18 March 2020 -

Össur hf (CPH:OSSR), a provider of non-invasive orthopaedics, reported on Tuesday that due to the current global outbreak of COVID-19, the company expects a short-term negative impact on demand for prosthetic and bracing and supports products.

As a result, financial performance will thus be temporarily negatively impacted.

This impact is however expected to lead to some pent-up of demand. Also, the long-term prospects or underlying fundamental drivers of the prosthetics and bracing and supports markets are not expected to change.

According to the company, given rapid day-to-day changes in regional markets across the world, it is currently unable to assess the magnitude and length of the expected short-term impact. Consequently, the guidance for 2020 is now withdrawn. As soon as Össur can estimate the expected financial impact of the coronavirus, an updated guidance for 2020 will be published.

In addition, in relation to the above, Össur has decided to temporarily suspend its share buyback programme. Össur added that its financial position is strong with a healthy balance sheet and access to financing through existing credit facilities. There are no plans in place to change the capital structure and dividend policy and capital allocation to shareholders will resume once the situation normalises.

Össur continues to monitor the development of COVID-19 closely. Primary focus is on safety and well-being for employees and customers and guidelines from local authorities are being followed.

Össur will publish any significant new information as it materialises and, in line with Össur's financial calendar, the interim report for Q1 2020 will be published on 30 April 2020.