Annual General Meeting: Tognum considers its corporate strategy confirmed
Posted on May 18, 2010
The specialist for propulsion and power solutions Tognum considers itself operationally and strategically well positioned for the future.
- Revenue and earnings forecast for 2010 validated
- Dividend policy confirmed
Friedrichshafen, 18 May 2010. The specialist for propulsion and power solutions Tognum considers itself operationally and strategically well positioned for the future. “Our business model and corporate strategy proved to be sound and once again performed well under pressure,” said Volker Heuer, chairman of the executive board of Tognum AG today, addressing the shareholders in the Graf-Zeppelin-Haus in Friedrichshafen. Following the sale of its propeller shaft business, the company is now focusing solely on its off-highway applications. Combined with a wide range of application areas and its international reach, this strategy gives the company stability in the event of economic fluctuations.
“In 2009, we demonstrated that, even under adverse conditions, we are capable of generating sustainable profits and our business is future-proof,” Heuer added. The CEO pointed out that Tognum’s balance was sound and, as a result of its financial and operational strength, the company would be able to continue to pursue its projects and stand by its long-term strategy. He reaffirmed once again the forecast for the business performance in 2010 that had been presented at the annual press conference in March, according to which Tognum expects to generate revenues this year of between €2.3 to 2.5 billion, with an adjusted EBIT margin of 6 to 9%. In the mid-term, Tognum also wants to grow faster than the market and achieve a double-digit return on sales.
In line with its growth strategy, Tognum is making enormous investments in the future and this year will be making the largest R&D budget available in the company’s history. “With innovative, high-tech products we will be able to move ahead faster when the crisis is over and expand our competitive edge in the long term,” Heuer said.
Tognum stands by its dividend policy. Since going public, Tognum has distributed between 30 and 50% of the Group’s net income in the form of dividends. And Tognum will continue to pursue this policy in the years to come. For the 2009 financial year, both the executive and the supervisory board of Tognum AG propose paying the shareholders a dividend of €0.35 per share.