Altra Industrial Motion Corp. (Nasdaq: AIMC), a leading global
manufacturer and supplier of motion control, power transmission and
automation products, today announced that its Board of Directors
has approved the payment of a quarterly cash dividend of $0.04 per
share for the second quarter of 2020. This dividend represents a
reduction from the dividend of $0.17 per share declared in the
first quarter of 2020. Reducing the dividend to this level is
expected to provide the Company with additional financial
flexibility by freeing up more than $30.0 million of cash on an
annualized basis. The second quarter 2020 dividend is the
thirty-third consecutive dividend in the Company’s history. The
dividend will be paid on July 6, 2020 to shareholders of record as
of the close of business on June 18, 2020. Future declarations of
quarterly cash dividends are subject to approval by the Board of
Directors and to the Board's continuing determination that the
declaration of dividends is in the best interests of Altra's
shareholders and is in compliance with all laws and agreements of
Altra applicable to the declaration and payment of cash dividends.
Future dividends may be further adjusted at the Board’s discretion
based on market conditions and capital availability.
About Altra Industrial Motion Corp.
Altra Industrial Motion Corp. is a premier industrial, global
manufacturer and supplier of electromechanical power transmission,
motion control and automation products, including highly engineered
power transmission, motion control and engine braking systems and
components. Altra's portfolio consists of 27 well-respected brands
including Bauer Gear Motor, Boston Gear, Jacobs Vehicle Systems,
Kollmorgen, Portescap, Stromag, Svendborg Brakes, TB Wood's,
Thomson and Warner Electric. Headquartered in Braintree,
Massachusetts, Altra has approximately 9,200 employees and over 50
production facilities in 16 countries around the world.
All statements, other than statements of historical fact
included in this release are forward-looking statements, as that
term is defined in the Private Securities Litigation Reform Act of
1995. These statements include, but are not limited to, any
statement that may predict, forecast, indicate or imply future
results, performance, achievements or events. Forward-looking
statements can generally be identified by phrases such as
“believes,” “expects,” “potential,” “continues,” “may,” “should,”
“seeks,” “predicts,” “anticipates,” “intends,” “projects,”
“estimates,” “plans,” “could,” “designed”, “should be,” and other
similar expressions that denote expectations of future or
conditional events rather than statements of fact. Forward-looking
statements also may relate to strategies, plans and objectives for,
and potential results of, future operations, financial results,
financial condition, business prospects, growth strategy and
liquidity, and are based upon financial data, market assumptions
and management's current business plans and beliefs or current
estimates of future results or trends available only as of the time
the statements are made, which may become out of date or
incomplete. Forward looking statements are inherently uncertain,
and investors must recognize that events could differ significantly
from our expectations. These statements include, but may not be
limited to, the payment and maintenance of a quarterly
dividend.
In addition to the risks and uncertainties noted in this
release, there are certain factors that could cause actual results
to differ materially from those anticipated by some of the
statements made. These include: (1) competitive pressures, (2)
changes in political and economic conditions in the United States
and abroad and the cyclical nature of our markets, (3) loss of
distributors, (4) the ability to develop new products and respond
to customer needs, (5) risks associated with international
operations, including currency risks, and the effects of tariffs
and other trade actions taken by the United States and other
countries (6) accuracy of estimated forecasts of OEM customers and
the impact of the current global economic environment on our
customers, (7) risks associated with a disruption to our supply
chain, (8) fluctuations in the costs of raw materials used in our
products, (9) product liability claims, (10) work stoppages and
other labor issues, (11) changes in employment, environmental, tax
and other laws and changes in the enforcement of laws, (12) loss of
key management and other personnel, (13) risks associated with
compliance with environmental laws, (14) the ability to
successfully execute, manage and integrate key acquisitions and
mergers, (15) failure to obtain or protect intellectual property
rights, (16) risks associated with impairment of goodwill or
intangibles assets, (17) failure of operating equipment or
information technology infrastructure, including cyber-attacks or
other security breaches, and failure to comply with data privacy
laws or regulations, (18) risks associated with our debt leverage,
(19) risks associated with restrictions contained in the agreements
governing Altra’s $400 million aggregate principal amount of 6.125%
senior notes due 2026 and Altra’s revolving credit facility and
term loan facility, (20) risks associated with compliance with tax
laws, (21) risks associated with the global recession and
volatility and disruption in the global financial markets, (22)
risks associated with implementation of our enterprise resource
planning system, (23) risks associated with the Svendborg, Stromag,
and A&S acquisitions and integration and other acquisitions,
(24) risks associated with certain minimum purchase agreements we
have with suppliers, (25) risks related to our relationships with
strategic partners, (26) our ability to offset increased commodity
and labor costs with increased prices, (27) risks associated with
our exposure to variable interest rates and foreign currency
exchange rates, (28) risks associated with interest rate swap
contracts, (29) risks associated with our exposure to renewable
energy markets, (30) risks related to regulations regarding
conflict minerals, (31) risks related to restructuring and plant
consolidations, (32) risks related to our acquisition of A&S,
including (a) the possibility that we may be unable to achieve
expected synergies and operating efficiencies in connection with
the transaction within the expected time-frames or at all and to
successfully integrate A&S, (b) expected or targeted future
financial and operating performance and results, (c) operating
costs, customer loss and business disruption (including, without
limitation, difficulties in maintaining relationships with
employees, customers, clients or suppliers) being greater than
expected following the transaction, (d) our ability to retain key
executives and employees, (e) slowdowns or downturns in economic
conditions generally and in the markets in which the A&S
businesses participate specifically, (f) lower than expected
investments and capital expenditures in equipment that utilizes
components produced by us or A&S, (g) lower than expected
demand for our or A&S’s repair and replacement businesses, (h)
our ability to successfully integrate the merged assets and the
associated technology and achieve operational efficiencies, (i) the
integration of A&S being more difficult, time-consuming or
costly than expected, (j) the inability to undertake certain
corporate actions that otherwise could be advantageous to comply
with certain tax covenants, (k) potential unknown liabilities and
unforeseen expenses related to the acquisition and (l) the impact
on our internal controls and compliance with the regulatory
requirements under the Sarbanes-Oxley Act of 2002, (33) the risk
associated with the UK’s departure from the European Union, (34)
Altra’s ability to achieve the efficiencies, savings and other
benefits anticipated from its cost reduction, margin improvement,
restructuring, plant consolidation and other business optimization
initiatives, (35) the risks associated with transitioning from
LIBOR to a replacement alternative reference rate, (36) the risks
associated with COVID-19 , and (37) other risks, uncertainties and
other factors described in the Company's quarterly reports on Form
10-Q and annual reports on Form 10-K and in the Company's other
filings with the U.S. Securities and Exchange Commission (SEC) or
in materials incorporated therein by reference. Except as required
by applicable law, Altra does not intend to, update or alter its
forward-looking statements, whether as a result of new information,
future events or otherwise. AIMC-G
Contacts:Christian StorchExecutive Vice
President and Chief Financial OfficerAltra Industrial Motion
Corp.781-917-0541Email: christian.storch@altramotion.com
Altra Industrial Motion (NASDAQ:AIMC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Altra Industrial Motion (NASDAQ:AIMC)
Historical Stock Chart
From Apr 2023 to Apr 2024