18 November 2014, 00:00
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.