6 May 2019 06:00
Cavotec sets new financial targets
Organic annual revenue growth of at least 5% from 2020, in addition to possible acquisitionsAn annual adjusted EBIT margin of more than 7% within two years and more than 10% within four yearsDividends of approximately 30-50% of net profits over a business cycle
Over the past five quarters, Cavotec’s focus has been on simplifying and stabilizing the business after several years of stagnant revenues and declining profitability. Actions to increase the efficiency needed for growth have been implemented as part of an extensive transformation program. Moreover, Cavotec’s restructruring and cost reduction program, has laid the foundation for improved profitability from 2019 and onwards.
Mikael Norin, CEO, says: “With our transformation and restructuring we have created a strong foundation to build on. This means that we are now comfortable with presenting and committing to new financial targets for Cavotec for the coming years.”
The Board of Directors of Cavotec SA has adopted the following financial targets and dividend policy for the Group:
Sales Growth – Cavotec’s target is to achieve an annual organic revenue growth of at least 5% from 2020, in addition to possible acquisitions.
EBIT Margin – Cavotec’s target is to reach an annual adjusted EBIT margin of more than 7% within two years and more than 10% within four years.
Dividends – Cavotec’s target is to distribute dividends of approximately 30-50% of net profits over a business cycle. Any pay-out decision will be based on the Company’s financial position, investment needs, acquisitions and liquidity position.
ENDS
For further details please contact:
Johan HähnelInvestor Relations ManagerTelephone: +46 70 605 63 34 Email: investor@cavotec.com
This is information that Cavotec SA is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on 6 May 2019.
Cavotec is a leading engineering group that designs and manufactures automated connection and electrification systems for ports, airports and industrial applications worldwide. We want to contribute to a future world that is cleaner, safer and more efficient by providing innovative connection solutions for ships, aircraft and mobile equipment today. To find out more about Cavotec, visit our website at cavotec.com
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Press release 6 May 2019