CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 18 NOVEMBER 2014 AT 8.30 AM (EET)
Cargotec's financial targets for 2016
Cargotec's Board of Directors has confirmed financial targets for Cargotec Corporation for 2016. The targets are:
- Operating profit (EBIT) margin exceeding 8%
- Return on capital employed (ROCE pre-tax) exceeding 13%
- Gearing below 50%
- Dividend 30-50% of earnings per share
The financial targets reflect Cargotec's continued focus to strengthen market leadership and improve profitability in all of Cargotec's three business areas during 2015-2016. Already on-going actions to improve the competitiveness of its offering, to drive profitable growth in services as well as to enhance sales and distribution operations globally will be further intensified and developed.
A new target on return on capital employed will help to ensure better shareholder value creation during this period, mainly by increased focus on net working capital efficiency in the three business areas.
Cargotec continues to repeat its other two financial targets of retaining gearing below 50% and distributing a dividend of 30-50% of earnings per share to its owners. Profitability improvement and focus on cash generation are central in bringing the gearing down to the targeted level after the recent acquisitions in MacGregor.
Capital Markets Day 2014
Cargotec will host a Capital Markets Day today, 18 November 2014, in Helsinki, Finland. Cargotec's senior management will discuss current status as well as mid-term outlook of the businesses in its presentations. Cargotec's Capital Markets Day will begin at 1.00 p.m. Finnish time/EET and finish by 6.00 p.m. English-language presentation material will be published on Cargotec's website at www.cargotec.com/investors after the event.
Mika Vehviläinen, President and CEO, tel. +358 20 777 4100
Eeva Sipilä, EVP and CFO, tel. +358 20 777 4104
Paula Liimatta, Director, Investor Relations, tel. +358 20 777 4084
Cargotec shapes the cargo handling industry for the benefit of its customers and shareholders. Cargotec's business areas MacGregor, Kalmar and Hiab are recognised leaders in cargo and load handling solutions around the world. Their global network is positioned close to customers and offers extensive services that ensure a continuous, reliable and sustainable performance according to customers' needs. Cargotec's sales totalled approximately EUR 3.2 billion in 2013 and it employs approximately 11,000 people. Cargotec's class B shares are quoted on NASDAQ OMX Helsinki Ltd under symbol CGCBV. www.cargotec.com