Canadian bus maker NFI Group (NFI) is slashing its quarterly dividend after issuing disappointing financial results.
The Winnipeg-based company said it will cut its payment to shareholders by 75% to $0.05 U.S. per share as of April 15. Previously, the company paid a quarterly dividend of $0.21 U.S. a share.
In a news release, NFI said its board of directors decided the cut was “prudent” amid ongoing supply and logistics disruptions that are hurting the company financially. It added that it expects to restore the dividend payment in 2023.
NFI said it swung to a net loss of $8.7 million U.S. in the fourth quarter, compared to a profit of $8.5 million U.S. a year earlier, while its earnings fell to $26.2 million U.S. from $65 million U.S. a year ago. Analysts, on average, had expected $32.2 million U.S. in quarterly earnings.
Year to date, NFI Group’s stock has declined 28% to close yesterday (March 10) at $14.99 per share.