Chicago Rivet & Machine cuts dividend to 3c from 10c per share
Chicago Rivet & Machine Co. announced that its Board of Directors declared a quarterly cash dividend of 3c per share payable December 20 to all shareholders of record on December 5. This is a 7c per share reduction from the 10c 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.
