The price for Dorel Industries shares dropped after the company suspended dividends
MONTREAL -- Dorel Industries Inc. shares plunged Tuesday after the Montreal-based company suspended its dividend, citing U.S. tariffs on its China-made products as a major factor.
Its B class shares were down $2.89 or about 32 per cent at $6.20 in early trading at the Toronto Stock Exchange.
Dorel says it's feeling the impact of increased U.S. tariffs on Chinese imports, including the furniture, bicycles and other goods that the Canadian company produces.
The U.S. raised tariffs on Chinese goods in May to 25 per cent, up from 10 per cent when tariffs were introduced a year ago.
Dorel slashed its quarterly dividend in half earlier this year in a move that it said would give it increased flexibility.
The company said the dividend of 15 cents US per share declared on Aug. 2 is not affected and will be paid on Wednesday.
This report by The Canadian Press was first published Oct. 1, 2019.