Milwaukee-based Strattec Security Corp. announced Friday that it was suspending its quarterly dividend.
"While the company’s current financial position is strong, our board of directors believes that during the unprecedented economic conditions we are facing, the use of cash to sustain and enhance the business is of major strategic importance,” said Harold M. Stratton II, chairman, president and CEO. "Part of our strategy during these troubled economic times is to be prepared for opportunities that arise out of the stress in the automotive supply base. We have already identified several such opportunities which we are currently evaluating. We expect that many more opportunities will be identified in the months to come. Our ability to quickly respond to those opportunities that may have value for our business is to a large degree dependent on our cash resources. We therefore believe that the prudent and strategically optimal action for the long term benefit of our company and its shareholders is to suspend our quarterly dividend."