Dorel Industries Inc. said Tuesday it will stop paying a dividend, citing the impact of increased U.S. tariffs and following a review of preliminary third-quarter results. The Canada-based juvenile products and bicycle maker, which brands include Schwinn, Cannondale and Maxi-Cosi, said the dividend being paid on Oct. 2 is not affected. Dorel's previous quarterly dividend was 15 cents a share, with the annual dividend rate of 60 cents a share implying a dividend yield of 8.82% on the U.S.-listed shares. The company said the increase in May on tariffs on Chinese imports to 25% is having a "much greater impact" on its business than the previous 10% tariff. "We raised prices midway through the third quarter and this has had several negative consequences," said Chief Executive Martin Schwartz. "It is prudent to suspend the dividend until the chaotic market conditions created by tariffs are normalized." As a result, Schwartz said the expected gross margin improvement will be delayed until the beginning of 2020. The U.S.-listed stock has tumbled 47.4% year to date, while the S&P 500 has gained 18.7%.
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Virtually No One Will Lease to WeWork. That’s a Drag on NYC’s Office Market.Turmoil at WeWork is causing the shared-office-space company to all but stop signing new leases, a fresh blow to New York City’s softening commercial real estate market. are they still moving forward with this IPO?
Read more »