Polyester maker Wellman exploring “strategic alternatives”
August 21, 2006-- Home Textiles Today,
Shrewsbury, N.J. -- Wellman, Inc. said it is “exploring steps to improve its overall operating performance including strategic alternatives for its non-core businesses,” language that often means a company is seeking a buyer for some or all of its assets.
Thomas Duff, chairman and ceo of the polyester resins and fibers manufacturer, said, "We are reviewing the performance of all of our operations and are exploring strategic options for our non-core businesses. We expect that these steps will result in improved operating performance, cash flow and return to our stockholders."
The board of directors also declared a quarterly dividend of $0.02 per share on the outstanding shares of the company's common stock, noting, “This reduced dividend rate is appropriate considering Wellman's operating performance in the past year, its current competitive environment, debt levels, renewed focus on debt reduction after the completion of its PET resin expansion, and the dividend levels of other companies.”