(Source: Business Wire)
The board of directors of Worthington Industries, Inc. (NYSE:WOR) has declared a quarterly dividend of $0.10 per share, a 41% reduction from the previous quarter. The dividend is payable on June 29, 2009, to shareholders of record June 15, 2009. This marks the 166th consecutive quarter that Worthington has paid a dividend since it became a public company in 1968.
While the company's financial condition and free cash flow remain solid, it has reduced the dividend as part of a broad cost reduction initiative aimed at offsetting declines in the automotive and construction end markets, exacerbated by the summer shutdowns at GM and Chrysler.
These actions effective during the fiscal first quarter (June -- August) include: a one week shut-down of four steel processing facilities; suspension of holiday pay for eligible employees; a sliding scale pay-reduction ranging from 3% to 20% for salaried employees with a 25% reduction for the CEO; a 20% reduction in meeting fees for the board of directors; and a suspension of the company's 401-K match for all employees.
The goal of these temporary actions is to mitigate the impact of the extended summer shutdowns and maintain the company's strong balance sheet and financial flexibility.
John P. McConnell, Chairman and CEO stated, "Our employees have done an excellent job of cutting costs and maintaining our business since the recession began. The extended summer shutdowns announced by General Motors and Chrysler have pulled volume down deeply in our steel processing business. Maintaining a strong balance sheet and flexible credit facilities remain a priority. These additional steps will help ensure that we preserve this advantage into economic recovery. We expect our volumes to improve as Chrysler and GM return to regular production schedules, and their future becomes more clear."
Worthington Industries is a leading diversified metal processing company with annual sales of approximately $3 billion. The Columbus, Ohio, based company is North America's premier value-added steel processor and a leader in manufactured metal products such as metal framing, metal ceiling grid systems, pressure cylinders, automotive past model service stampings and laser welded blanks. The company employs more than 7,000 people and operates 60 facilities in 10 countries.
Founded in 1955, the company operates under a long-standing corporate philosophy rooted in the golden rule, with earning money for its shareholders as the first corporate goal.
