CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 30 NOVEMBER 2015 AT 1.30 PM EET
Cargotec's Capital Markets Day 2015: Investing to become the leader in intelligent cargo handling
Cargotec is holding its Capital Markets Day today in London. President and CEO Mika Vehviläinen will outline Cargotec's growth ambitions, positioning the company as the leader in intelligent cargo handling by building on services, digitalisation and people leadership. Cargotec will invest into R&D, digitalisation and developing internal capabilities to speed up this transformation and support profitable growth.
The new goal for each of the three business areas, Hiab, Kalmar and MacGregor, is to reach 10% operating profit margin (EBIT) over the cycle. Cargotec's goal is to reach 15% return on capital employed (ROCE pre-tax) over the cycle. These new targets reflect Cargotec's growth strategy and expected return of the planned investments. They replace two of the 2016 financial targets: reaching at least 8% operating profit margin and at least 13% return on capital employed. Together with the planned investments and MacGregor's market environment, the original targets will be challenging to reach during 2016. However, during 2016 the company expects to improve on both those targets from the current level. Cargotec expects to meet the current gearing target of below 50% and maintains its current dividend payout of 30-50% of earnings per share.
"We have set ambitious performance targets in the past couple of years and delivered a strong turnaround. The 2016 financial targets were always planned to provide an intermediate step to delivering on the full potential of our businesses. We are confident that the decision to invest a part of our profit improvement next year to strengthen Cargotec on this journey will deliver the best shareholder value. In addition, the market environment in MacGregor has significantly changed from when we originally set the targets. Kalmar and Hiab are well ahead of their plans, but closing the profitability gap would have meant postponing further development. The environment around us is moving fast and we want to ensure our leading position in the industries we operate in", states President and CEO Mika Vehviläinen.
During the Capital Markets Day, each of the business area Presidents will share their insights on the market situation and discuss how they will contribute to the implementation of Cargotec's transformation strategy, and reach 10% operating profit margin over the cycle in their respective business area.
In addition, CEO Mika Vehviläinen will reconfirm Cargotec's outlook for 2015 (published on 21 October 2015): Cargotec's 2015 sales are expected to grow from 2014 and its operating profit, excluding restructuring costs for 2015, is expected to improve from 2014.
Cargotec's Capital Markets Day will begin in London at 12.30 pm local time. The presentation materials will be available at Cargotec's website (www.cargotec.com/investors) when the event begins. A direct webcast will be available via Cargotec's website. Recordings of the presentations will be posted on the site after the event.
Eeva Sipilä, Executive Vice President and CFO, tel. +358 20 777 4104
Leena Lie, Senior Vice President, Communications and Investor Relations, tel. +358 20 777 4483
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 in 2014 totalled approximately EUR 3.4 billion 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