Tecumseh Suspends Quarterly Dividends
Tecumseh Products announces that it will be suspending its
quarterly dividend until profitability improves to fund business improvement and new product initiatives.
"The Company has paid dividends without interruption for more than 50 years, and we know that we
have many shareholders who rely on those dividends. We deeply regret this action, but logic dictates that we continue to fund our business improvement and new product initiatives in order to create a business that can resume dividend payments in the future," stated Todd Herrick, Chairman of the Board & CEO.
"While recent amendments to the Company's financing arrangements would permit declaration of a third quarter dividend, future dividends may need to be curtailed. Instead of creating expectations of future dividends, the Company and its board of directors believe that it is in the long-term best
interest of shareholders to utilize available funds to continue ongoing restructuring efforts and reduce indebtedness," added James S. Nicholson, Vice President, Treasurer & CFO.
The determination to resume the payment of dividends will be made by the Company's board of directors based on the Company's earnings, financial requirements and other conditions prevailing at the time.
Tecumseh Products Company (NSDQ: TECUA) is a full line, independent global manufacturer of hermetic compressors for air conditioning and refrigeration products, gasoline engines and power train components for lawn and garden applications, submersible pumps, and small electric motors. In addition, Tecumseh Products Company has many other subsidiaries that not only sell products inside the world of Tecumseh, but to the outside world as well.
Source: Tecumseh Products Company LLC