SL Industries Announces Suspension of Cash Dividend
SL Industries Inc. (Mt. Laurel, NJ) announced that its board of directors has voted to suspend the company’s regular semi-annual cash dividend, which would have been payable in June 2001.
As previously announced, the company is presently not in compliance with certain financial covenants in its credit facility. As a result, the company is precluded from, among other things, paying cash dividends to its shareholders. Notwithstanding this, the company announced that its determination to suspend the cash dividend was based primarily on the current economic outlook and the company’s need to conserve its working capital for operating purposes at the present time.
Owen Farren, president and CEO of SL Industries, commented, “As we announced previously, weak economic conditions in the telecommunications and semiconductor markets have had an adverse effect on the company’s operating results and liquidity, and in all likelihood will continue with existing fixed costs. We have already announced a number of measures to lower costs. The board of directors believes that the suspension of the semi-annual dividend is an appropriate measure that will assist the company in its continuing efforts to manage working capital.”