Shares of Calumet Specialty Products (CLMT), a producer of specialty hydrocarbon products in North America, are sinking after the firm issued a weak forecast for the first quarter and suspended its quarterly dividend.

WEAK GUIDANCE: On Friday after the market close, Calumet issued a disappointing outlook for Q1, and said that based on preliminary data, the company expects to report a net loss of ($83M)-($59M), adjusted EBITDA of ($5M)-$10M and adjusted EBITDA, excluding special items of ($17M)-$3M. The company said its expected financial results for Q1 reflect a combination of lower benchmark refined product margins, seasonal weakness in asphalt sales prices and volumes sold, and seasonal softness in the local market premium on motor fuel products sold, compared to benchmark Gulf Coast prices and reduced customer drilling and completion activity in the oilfield services segment.

CEO COMMENTARY: Calumet Chief Executive Officer Tim Go commented that Q1 results were impacted by weakness in its fuel products segment, partially offset by continued stability in its core specialty products segment. During January and February, Go said that realized fuel margins were challenged in its niche products markets, similar to conditions evidenced during the fourth quarter of 2015, while asphalt inventories increased ahead of the spring selling season, reducing cash receipts in 1Q16. Go said that while 4Q15 and 1Q16 were challenging, "We are keenly focused on addressing our liquidity needs and other measures to position the Partnership for improved performance."

WHAT'S NOTABLE: In view of current volatility in market conditions and as part of a broader effort to maintain an adequate level of liquidity, the board of directors of Calumet's General partner unanimously voted to suspend the current quarterly dividend of 68.5c per unit, or $2.74 per unit on an annualized basis, effective for the quarter ended March 31.

ANALYST REACTION: This morning, four separate research firms -- Raymond James, RBC Capital, Janney Capital and Wells Fargo -- all downgraded Calumet Specialty Products due to its distribution suspension and disappointing outlook for Q1.

PRICE ACTION: In late morning trading, Calumet Specialty Products fell $4.33, or about 43.5%, to $5.83 on nearly ten times its average daily trading volume. Including today's pull back, the shares have lost approximately 78% over the past 12 months.