Kapsch TrafficCom AG, the Austrian maker of toll-road systems, will cut its full-year dividend after project delays in Poland and South Africa caused profit to fall even as sales reached a record.
Net income slid 3 percent to 27.5 million euros ($33.8 million) even after sales jumped 42 percent to 550 million euros. The company plans to pay a dividend of 90 cent a share compared with a euro the year before, Chief Executive Officer Georg Kapsch said today at a press conference in Vienna.
“While the delays affected our profit margin, they won’t be a lasting problem,” Kapsch said in the Austrian capital, where the company is based. “We’ve made massive investments in the future.”
Kapsch has expanded into 30 countries including the U.S., where it supplies technology to 22 million drivers using E-ZPass Group passes on toll roads. Kapsch TrafficCom is a listed unit of Austria’s 120-year-old Kapsch Group, which supplies system technologies and location-based services to companies including Apple Inc., Google Inc. and 3M Co.
“E-ZPass gives us a firm basis for solid growth in North America,” Kapsch said, adding that he’s positioning his family’s business to be a “dividend oriented” company.
Kapsch shares rose as much as 1.02 euros a share, or 1.7 percent, and traded at 60.50 euros at 11:18 a.m. in Vienna. The stock is up 3 percent this year, giving Kapsch a 787 million euro market value.