By Connor Hart
Chicago Rivet & Machine slashed its quarterly dividend to three cents from 10 cents, citing macroeconomic headwinds that are weighing on its performance.
The new payout, equal to 12 cents a year, represents an annual yield of about 0.6% based on Monday's closing price of $18.06.
The Naperville, Ill., company, which manufactures and sells rivets and specialty cold-formed parts, said its board determined that cutting the dividend was necessary given the company's recent operating performance.
The company -- which has attempted to curb operational challenges by adjusting prices, taking on cost-reduction projects and decreasing production -- said macroeconomic challenges are an additional pain point.
"Current macroeconomic headwinds exist that have impacted the company's financial performance in the most recent quarter," it said. In particular, the company noted a significant reduction in demand from its automotive customers.
While the headwinds are considered to be transient, they are expected to persist at least into the new year.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
November 18, 2024 18:42 ET (23:42 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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