OUTOTEC OYJ STOCK EXCHANGE RELEASE NOVEMBER 23, 2012 AT 8:30 AM
Outotec's new Services sales target and financial guidance for 2013
New Services sales target
Outotec's Board of Directors has set a new Services sales target for the company. Outotec's goal is to grow Services sales to the annual level of EUR 1 billion by the end of 2017. Services growth is planned to be achieved through:
- Organic growth,
- Strengthening local presence, and
- New life cycle service offerings
The previous target was to grow the sales of Services to the annual level of EUR 500 million by the end of 2015.
Long-term financial targets for sales and profitability
Outotec is targeting continuous profitable growth.
Outotec targets to achieve annual average sales growth of 10-20%.
Outotec's annual operating profit margin from business operations is targeted to be on average at 10% over the cycle, excluding one-time costs and purchase price allocations of acquired businesses.
Outotec targets to maintain strong balance sheet to provide operational flexibility and enable acquisitions.
The Board of Directors upholds the divided policy which was adopted on November 30, 2010 whereby the company aims to propose for the approval of the company's shareholders dividends representing at least 40% of the annual net income of Outotec for the preceding financial year.
Financial guidance for 2013
Based on the strong order backlog, current market outlook and the customer tendering activity, the management expects that in 2013:
- Sales will grow from 2012, and
- Operating profit margin from business operations(* will further improve compared to 2012
(*excluding one-time items and PPA amortizations
Factors affecting Outotec's financial guidance are described in Financial Statements and Interim Reports.
Capital markets day on November 29-30 in Hamburg
Outotec holds a Capital Markets Day for investors and analysts on November 29-30 in Hamburg. At the event, the new service business target and financial guidance will be discussed in greater detail. Presentations will be webcasted live starting at 9.00 am (EET). On-demand webcast will be available on November 30 at www.outotec.com/investors. More information of the CMD agenda is available at www.outotec.com/investors.
Board of Directors
For further information, please contact:
Mikko Puolakka, Chief Financial Officer
tel. +358 20 529 2002
Rita Uotila, Vice President - Investor Relations
tel. +358 20 529 2003, mobile +358 400 954 141
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