1/17/2007 7:53 AM|
Stock Exchange Release, January 17, 2007 at 9.00 a.m. Finnish time
Cargotec Corporation's Board of Directors has decided on new financial targets for the Company. The targets for Cargotec have been set based on the strategy for the years 2007–2011. The targets reflect the growth expectations of Cargotec's industry as well as actions that have been implemented or that will be implemented by the Company. The Company's strategic priority of growing the share of services is expected to decrease the cyclicality of the business and improve profitability. Investments into growth during the beginning of the strategic period will impact both capital expenditure and operating expense levels.
Cargotec's financial targets are the following:
• Annual net sales growth exceeding 10 per cent (incl. acquisitions)
• Raising the operating income margin to 10 per cent
• Gearing below 50 per cent
According to the dividend policy approved in October 2005 the company pays a dividend of 30–50 per cent of earnings per share. The competitive dividend policy can be supplemented with share buy backs.
"The new financial targets are a natural continuation in developing Cargotec further. We have ambitious targets, but also a clear understanding of actions needed to achieve them. We want to strengthen our global market leader position by growing both organically and through acquisitions. Growing our services business is an integral part of our strategy and we will invest in expanding both our service network as well as our product offering. We also have the potential to raise our profitability further by efficiency improvements. We have lifted personnel and R&D into our strategic priorities in order to develop our know-how group-wide," states Cargotec's President and CEO Mikael Mäkinen.
Senior Executive Vice President and CFO
SVP, Investor Relations and Communications
For further information, please contact:
Mikael Mäkinen, President and CEO, tel. +358 204 55 4262
Kari Heinistö, Senior Executive Vice President and CFO, tel. +358 204 55 4542
Eeva Mäkelä, SVP, Investor Relations and Communications, tel. +358 204 55 4281
Cargotec Corporation is the world's leading provider of cargo handling solutions, which are used in local transportation, terminals, ports, distribution centers, and ships. Cargotec's operations are divided into three strong, global business areas: Hiab, Kalmar, and MacGREGOR, each of which is the market leader in its own segment. In 2005 Cargotec's net sales exceeded EUR 2.3 billion. The company employs some 8,000 people and has activities in more than 160 countries. Cargotec's class B shares are listed on the Helsinki Stock Exchange.