Spirit AeroSystems (NYSE:SPR) announced its Board of Directors declared a quarterly $0.01 per share cash dividend on its outstanding common stock on February 6. The dividend is payable April 9, 2020, to stockholders of record as of the close of business on March 20, 2020.

"In an abundance of caution, the Board concluded that it is in the best interests of Spirit and its stockholders to reduce Spirit's quarterly dividend," said Spirit AeroSystems President and CEO Tom Gentile. "Spirit has a strong history of capital returns through dividends and share repurchases and remains committed to returning capital to stockholders. However, given the significance of the 737 MAX program to Spirit, the Board believes it is prudent to preserve liquidity until production rates are at higher levels."

"The Company's Board will consider further action with respect to the dividend in the future, upon the MAX's return to service and further production stabilization, as appropriate and in line with Spirit's disciplined capital allocation strategy," Gentile added. "While we are going through this challenging period of lower rate production, the outlook for the MAX remains strong with a backlog of 4,400 aircraft."

The Board regularly evaluates the Company's capital allocation strategy and dividend policy. Any future determination regarding dividends will be at the discretion of the Board and will depend upon, among other factors, results of operations, financial condition, capital requirements and contractual restrictions.