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Black & Decker (BDK) Slashes Quarterly Dividend

April 30, 2009 2:16 PM EDT
The Black & Decker Corporation (NYSE: BDK) announced that its Board of Directors declared a quarterly cash dividend of $0.12 per share of the Corporation's outstanding common stock payable June 26, 2009, to stockholders of record at the close of business on June 12, 2009. This represents a reduction from the $0.42 quarterly dividend paid by the Corporation since 2007.

Nolan D. Archibald, Chairman and Chief Executive Officer, commented, "Black & Decker has paid a dividend consistently since 1937, and remains committed to returning cash to its stockholders through regular dividends. In today's uncertain and challenging economic environment, however, we believe it is important to preserve liquidity. By lowering the dividend to $0.12 per quarter, we will reduce cash outflows by $54 million in 2009. This action, along with lower capital expenditures and tighter working capital management, will strengthen our balance sheet, improve our credit metrics and provide greater financial flexibility. It is consistent with the conservative financial approach we have taken throughout the credit crisis, including our recent bond offering. While a dividend reduction was not an easy decision to make, we are confident that it is in the best long-term interest of our stockholders." [SM]

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