US: BorgWarner suspends quarterly dividend
The board of directors of BorgWarner has announced the temporary suspension of the company's quarterly dividend of $0.12 per share until global economic conditions improve.
"We are facing an unprecedented discontinuity in the marketplace," said Timothy Manganello, Chairman and CEO of the company.
"We continue to expect positive earnings and positive cash flow from operations for the full year 2009 based on our previously stated auto industry production assumptions. We will continue to reduce costs and to carefully manage liquidity to position ourselves well for the future. Our balance sheet remains strong and this action will further strengthen our cash flow by $60 million annually. We intend to reinstate our dividend as soon as the automotive industry returns to a normalised level of activity."