ParkOhio Announces Quarterly Dividend

Rhea-AI Summary

Park-Ohio Holdings Corp. (PKOH) has declared a quarterly cash dividend of $0.125 per share on the common stock outstanding, to be paid on February 23, 2024, to shareholders of record as of the close of business on February 9, 2024. ParkOhio is a diversified international company providing supply chain management outsourcing service, capital equipment, and manufactured components. Headquartered in Cleveland, Ohio, ParkOhio operates more than 130 manufacturing sites and supply chain logistics facilities worldwide.

Insights

Financial Analyst

The declaration of a quarterly cash dividend of $0.125 per share by Park-Ohio Holdings Corp. is a direct reflection of the company's current financial health and its ability to generate sufficient cash flow. Dividends are typically distributed to shareholders when a company has excess profits and wishes to return value to its shareholders. This action can be a positive signal to the market, indicating the management's confidence in the company's steady cash flow and profitability.

However, it's important to assess the dividend yield, which is the dividend per share divided by the stock price. A higher yield can make the stock more attractive to income-seeking investors, but it can also indicate that the stock price is low due to market skepticism about the company's future growth prospects. Additionally, the payout ratio, the proportion of earnings paid out as dividends, should be considered. A sustainable payout ratio typically ranges from 35% to 55%. Ratios significantly higher could suggest that the company is prioritizing dividends over reinvestment in growth opportunities or debt reduction.

Market Research Analyst

From a market perspective, the announcement of Park-Ohio Holdings Corp.'s dividend payout needs to be contextualized within the industry and its historical dividend policy. If the company has a stable or increasing dividend trend, it can be perceived as a reliable income stock. Conversely, if the dividend has experienced cuts or been inconsistent, investor confidence might be affected, potentially impacting the stock's market performance.

Furthermore, investors often look at dividend announcements in conjunction with the company's overall financial strategy, including capital investment plans, acquisitions and debt management. For a diversified international company like Park-Ohio, operating across three segments, it is essential to analyze how these dividends are funded and whether they align with long-term strategic goals across different markets and product lines.

Economist

Dividend decisions are not made in a vacuum and can be influenced by broader economic conditions. In a low-interest-rate environment, dividends become more attractive as they may offer better returns than fixed-income securities. Conversely, in a high-interest-rate environment, companies might be incentivized to reduce dividend payouts to conserve cash or pay down debt that becomes more expensive to service.

Additionally, global economic factors such as international trade policies, currency fluctuations and commodity prices can impact the financial performance of a diversified company like Park-Ohio, which operates worldwide. The ability to sustain dividends over time can be seen as a sign of resilience against such macroeconomic challenges.

CLEVELAND, OHIO--(BUSINESS WIRE)-- The Board of Directors of Park-Ohio Holdings Corp. (NASDAQ: PKOH) has declared a quarterly cash dividend of $0.125 per share on the common stock outstanding, to be paid on February 23, 2024, to shareholders of record as of the close of business on February 9, 2024.

ParkOhio is a diversified international company providing world-class customers with a supply chain management outsourcing service, capital equipment used on their production lines, and manufactured components used to assemble their products. Headquartered in Cleveland, Ohio, ParkOhio operates more than 130 manufacturing sites and supply chain logistics facilities worldwide, through three reportable segments: Supply Technologies, Assembly Components and Engineered Products.

This news release contains forward-looking statements, including statements regarding future performance of the Company, that are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors that could cause actual results to differ materially from expectations include, but are not limited to, the following: our ability to realize any contingent consideration from the sale of the Aluminum Products business; the impact supply chain issues such as the global semiconductor micro-chip shortage and logistic issues have on our business, results of operations, financial position and liquidity; our substantial indebtedness; the uncertainty of the global economic environment; general business conditions and competitive factors, including pricing pressures and product innovation; demand for our products and services; the impact of labor disturbances affecting our customers; raw material availability and pricing; fluctuations in energy costs; component part availability and pricing; changes in our relationships with customers and suppliers; the financial condition of our customers, including the impact of any bankruptcies; our ability to successfully integrate recent and future acquisitions into existing operations; the amounts and timing, if any, of purchases of our common stock; changes in general economic conditions such as inflation rates, interest rates, tax rates, unemployment rates, higher labor and healthcare costs, recessions and changing government policies, laws and regulations, including those related to the current global uncertainties and crises, such as tariffs and surcharges; adverse impacts to us, our suppliers and customers from acts of terrorism or hostilities, including the conflicts between Russia and Ukraine and in the Middle East, or political unrest, including the rising tension between China and the United States; public health issues, including the outbreak of infectious diseases and any impact on our facilities and operations and our customers and suppliers; our ability to meet various covenants, including financial covenants, contained in the agreements governing our indebtedness; disruptions, uncertainties or volatility in the credit markets that may limit our access to capital; potential disruption due to a partial or complete reconfiguration of the European Union; increasingly stringent domestic and foreign governmental regulations, including those affecting the environment or import and export controls and other trade barriers; inherent uncertainties involved in assessing our potential liability for environmental remediation-related activities; the outcome of pending and future litigation and other claims and disputes with customers; our dependence on the automotive and heavy-duty truck industries, which are highly cyclical; the dependence of the automotive industry on consumer spending; our ability to negotiate contracts with labor unions; our dependence on key management; our dependence on information systems; our ability to continue to pay cash dividends, and the timing and amount of any such dividends; and the other factors we describe under “Item 1A. Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. In light of these and other uncertainties, the inclusion of a forward-looking statement herein should not be regarded as a representation by us that our plans and objectives will be achieved. The Company assumes no obligation to update the information in this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240126280019/en/

MATTHEW V. CRAWFORD

PARK-OHIO HOLDINGS CORP.

(440) 947-2000

Source: Park-Ohio Holdings Corp.

FAQ

What is the quarterly cash dividend declared by Park-Ohio Holdings Corp. (PKOH)?

The quarterly cash dividend declared is $0.125 per share on the common stock outstanding.

When will the dividend be paid to shareholders of Park-Ohio Holdings Corp. (PKOH)?

The dividend will be paid on February 23, 2024.

How many manufacturing sites and supply chain logistics facilities does Park-Ohio Holdings Corp. (PKOH) operate worldwide?

ParkOhio operates more than 130 manufacturing sites and supply chain logistics facilities worldwide.

What are the reportable segments of Park-Ohio Holdings Corp. (PKOH)?

The reportable segments are Supply Technologies, Assembly Components, and Engineered Products.