Logitech Rises as Company Outlines One-Time Dividend Plan
Stock Chart for Logitech International SA (LOGN)
Logitech International SA (LOGN) surged the most in eight weeks in Zurich trading after the world’s biggest maker of computer mice outlined plans for a one-time dividend, the first payment to shareholders since 1996.
Investors will be asked at the annual shareholders meeting Sept. 5 to approve a dividend of 81 centimes a share, Morges, Switzerland-based Logitech said in a statement yesterday. The shares rose as much as 6.2 percent to 10.30 francs, the biggest intraday gain since May 16, and were up 4 percent as of 11:06 a.m., valuing the company at 1.93 billion francs ($2 billion).
The manufacturer cut jobs to save about $80 million a year and revamped its sales organization to simplify and speed up product development and revive revenue growth. The proliferation of tablet computers that don’t need mice has eroded the traditional desktop and notebook business of Logitech, which hasn’t been able to exceed the sales record set in 2008.
“We determined that we could best reward our shareholders by taking advantage of our strong cash position to offer a one- time distribution that is not subject to Swiss withholding tax for any of our shareholders,” Chief Executive Officer Guerrino De Luca said in the statement. The payment is supposed to make up for Logitech’s “poor financial performance” in the 12 months through March.
The stock has risen 38 percent this year, beating a 4.2 percent gain for the Swiss Market Index. Logitech stock slumped 59 percent in 2011.
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