PORT HOPE, ON, Feb. 12 /CNW/ - Viceroy Homes today announced that the Company will temporarily suspend its quarterly dividend, reflecting the weak Japanese Yen and the prolonged negative impact this is having on the competitiveness of the products it sells there. Over the past year, the company has experienced a significant reduction of incoming orders fromJapan, historically its largest market.
This move comes after the company announced a reduction in the quarterly dividend in November 2006.
"This difficult decision is a necessary and prudent step in the midst of successive disappointing quarters and a very tough period inJapan . Even though we have a strategy to boost our North American business, these initiatives will need time to take hold," said Gaylord Lindal, President, Chairman and CEO of Viceroy Homes. "As we noted in November, our cash position remains strong, we have no debt and we are optimistic about future sales growth in our key markets. We hoped that reducing the dividend would be enough to carry us through this period; however, Viceroy's Board of Directors determined that suspending the dividend was necessary at this point."
The dividend suspension will affect payments that would have been made on March 1st, the fourth quarter of fiscal 2007.
Founded 51 years ago, Viceroy Homes is a leader in pre-engineered housing that offers high quality building designs and materials combined with lower cost and reduced on-site construction time. Viceroy is the largest supplier of Canadian housing technology to a growing export market providing superior housing solutions for builders and developers around the world. The Company has vertically integrated manufacturing facilities located in Ontario and British Columbia. Viceroy's Class A Subordinate Voting Shares trade on theToronto Stock Exchange under the symbol VHL.A.
For further information: William R. Simpson, Vice-President, Finance and Secretary-Treasurer, (905) 885-8600 - Ext. 220; www.viceroy.com