The board of directors for Wabash National Corp. has voted to suspend the payment of quarterly cash dividends of the company’s common stock, effective immediately, due to weak economic conditions and the uncertainty of the timing of a recovery, the company said.
"The suspension of dividend payments on our common stock which will save the company approximately $5.5 million annually is being taken given the extremely challenging economic environment and is consistent with our ongoing actions to reduce costs and enhance liquidity,” said Richard J. Giromini, Wabash president & CEO. “We are confident that Wabash will emerge in a stronger position when the economy improves but, in the current downturn, the Board believes that focusing the Company's full resources toward the operational needs of the business is the most prudent course of action."
According to the company, Wabash had liquidity of approximately $100 million through cash and available borrowings under its revolving credit facility, as of November 30, 2008.
