NAPERVILLE, Ill., Nov. 18,
2024 /PRNewswire/ -- Chicago Rivet & Machine
Co. (NYSE American: CVR) today announced that its Board of
Directors declared a quarterly cash dividend of $0.03 per share payable December 20, 2024, to all shareholders of record
on December 5, 2024. This is a
$0.07 per share reduction from the
$0.10 per share quarterly cash
dividend that the Company has declared and paid in recent
quarters.
The Company stated that while its financial position remains
sound, the Board of Directors determined that the reduction in the
dividend was prudent given the Company's recent operating
performance. As previously disclosed, the Company has been
implementing multiple initiatives to improve performance that have
led to year-over-year performance improvement. These include price
adjustments with our customers and cost reduction projects,
including the previously disclosed consolidation of the Albia,
Iowa operation into the
Tyrone, Pennsylvania
operation.
Notwithstanding, current macroeconomic headwinds exist that
have impacted the Company's financial performance in the most
recent quarter, in particular, a significant reduction in demand
from the Company's automotive customers. While the Company believes
this to be transient, it is expected to persist into 2025, and the
Company is diligently pursuing strategies to develop new customer
relationships and build on existing relationships in all of the
markets served.
With respect to the payment of future dividends, the Board of
Directors will continue to consider the Company's current
profitability, the outlook for long-term profitability, known and
potential cash requirements, and the overall financial condition of
the Company, and any dividend declared will be solely at the
discretion of the Board of Directors.
For further information, please contact Investor Relations at
(630) 357-8500.
Forward-Looking Statements
This discussion contains certain "forward-looking statements"
which are inherently subject to risks and uncertainties that may
cause actual events to differ materially from those discussed
herein. Factors which may cause such differences in events include,
those disclosed under "Risk Factors" in our Annual Report on Form
10-K and in the other filings we make with the United States
Securities and Exchange Commission. These factors, include among
other things: conditions in the domestic automotive industry upon
which we rely for sales revenue, the intense competition in our
markets, the concentration of our sales with major
customers, risks related to export sales, the price and
availability of raw materials, supply chain disruptions, labor
relations issues, losses related to product liability, warranty and
recall claims, costs relating to environmental laws and
regulations, information systems disruptions, the loss of the
services of our key employees and difficulties in achieving cost
savings. Many of these factors are beyond our ability to control or
predict. Readers are cautioned not to place undue reliance on these
forward-looking statements. We undertake no obligation to publish
revised forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
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SOURCE Chicago Rivet & Machine Co.
