Cargotec Corporation, Stock Exchange Release, January 17, 2007 at 9.00 a.m.
Finnish time
Cargotec Sets New Financial Targets
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.
Sender:
Cargotec Corporation
Kari Heinistö Eeva Mäkelä
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.
www.cargotec.com