Woodward Implements Actions in Response to the Economic Impact of COVID-19 and Adopts Stockholder Rights Plan

FORT COLLINS, Colo., April 06, 2020 (GLOBE NEWSWIRE) -- Woodward, Inc. (NASDAQ: WWD) today announced a series of immediate initiatives to address the economic challenges resulting from the coronavirus (COVID-19) pandemic, which Woodward believes will result in an extended period of uncertainty.

Thomas A. Gendron, Chairman, Chief Executive Officer and President, said, “With the rapid spread of the coronavirus, we are living in unprecedented times, and I want to recognize the hard work and commitment of our employees as we work together to support one another in this challenging environment. As we navigate through the economic disruption caused by this pandemic, we are highly focused on ensuring the safety and well-being of our employees while protecting our business, maintaining our strong position with our customers and suppliers, and closely monitoring the impact on our business and the broader industry. While we have a strong balance sheet and available liquidity, including under our revolving credit facility, management of cash flow will remain a key focus throughout this downturn. We believe the steps we are taking will position us for longer-term growth while preserving our financial strength through this period of global uncertainty.”

Woodward is implementing the following actions:

• Workforce management through a combination of hiring freeze, layoffs and furloughs
• Reduction of company officers’ salaries and directors’ base retainers through 2020 (25% reduction for CEO and independent directors; 10% for all non-CEO officers) 
• Implementation of a company-wide wage freeze
• Elimination of annual bonus payments for 2020
• Reduction of all non-essential costs 
• Increased focus on reducing working capital
• Limiting capital expenditures to business-critical items

Due to the significant global uncertainty, Woodward is withdrawing its full-year 2020 guidance. The company will provide an updated view of the business and the above actions on its fiscal second quarter earnings release and conference call.

Woodward’s quarterly dividend was increased from $0.1625 to $0.28 per share as part of the planned dividend yield target for the combined company under the now-terminated merger agreement with Hexcel Corporation. To further preserve financial flexibility, Woodward is now reducing its quarterly dividend to $0.08125 per share, which currently represents approximately a 0.63% dividend yield, in line with the company’s average dividend yield for the 12 months preceding the announcement of the merger.