CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 5 SEPTEMBER 2017 AT 9.00 AM (EEST)
Cargotec updates its financial targets: 10% operating profit margin in 3-5 years
Cargotec has updated its financial targets ahead of the Capital Markets Day (CMD), which will be held on 12 September 2017 in London, starting at 12.30 (GMT).
The main updates are the following:
-Target to reach 10% operating profit margin in 3-5 years
-Target to reach minimum EUR 1.5 billion service and software sales in 3-5 years
-Targeting increasing dividend in the range of 30-50% of EPS, dividend to be paid twice a year*
|Previous targets||Updated targets|
|Grow faster than the market||Grow faster than the market|
|EBIT margin 10% for each business area over the cycle||Cargotec operating profit margin 10% in 3-5 years|
|Service and software sales 40% of net sales||Service and software sales 40% of net sales, minimum EUR 1.5 billion in 3-5 years|
|Dividend 30-50% of earnings per share||Increasing dividend in the range of 30-50% of EPS, dividend to be paid twice a year*|
|15% ROCE over the cycle||15% ROCE in 3-5 years|
|Gearing below 50%||Gearing below 50%|
*Proposal to be made for the Annual General Meeting 2018
The updated financial targets reflect Cargotec's increased profitability and stability. Cargotec's must-win battles - Build world-class services offering, Lead digitalisation, Build
world-class leadership - continue to form the core of the company's strategy. With the must-win battles, we aim to become the global leader in intelligent cargo handling.
More detailed information on how Cargotec will reach the new financial targets as well as the development and the next steps of the must-win battles will be provided in the Capital Markets Day, which will be held in London on September 12, 2017.
More information and registration to CMD is available at cargotec.com/investors
For further information, please contact:
Hanna-Maria Heikkinen, Vice President, Investor Relations, tel. +358 20 777 4084
Mikko Puolakka, Executive Vice President and CFO, tel. +358 20 777 4105
Cargotec (Nasdaq Helsinki: CGCBV) enables smarter cargo flow for a better everyday with its leading cargo handling solutions and services. Cargotec's business areas Kalmar, Hiab and MacGregor are pioneers in their fields. Through their unique position in ports, at sea and on roads, they optimise global cargo flows and create sustainable customer value. Cargotec's sales in 2016 totalled approximately EUR 3.5 billion and it employs over 11,000 people. www.cargotec.com