Logitech shares surge on dividend prospect
ZURICH (Reuters) - Shares in Logitech LOGN.VX rose nearly 6 percent on Tuesday to a one-week high, after the computer mouse-maker proposed a one-time dividend for this year.
The world's largest maker of computer mice said late on Monday that its board would ask shareholders to approve a payout of 0.81 Swiss franc per share from capital reserves, at the annual general meeting in September.
Shares in Logitech were trading up 4.2 percent at 10.11 francs per share at 0754 GMT.
The Switzerland and California-based company, which also makes speakers, webcams and keyboards, has faced challenges including a soft euro, a weak global economy, and a shift in the computer industry led by Apple's APPL.O iPhone that means systems rely less on peripheral components.
Those difficulties prompted it to issue a series of profit warnings last year and replace its chief executive. Logitech is now is cutting costs and jobs to boost profitability.
In October, acting CEO Guerrino De Luca promised no more bad news and the company posted a strong rise in fourth-quarter profit.
"We see this (dividend) as an indication that the company is confident about its products and that no major acquisition is planned," Vontobel analyst Michael Foeth said.
(Reporting by Catherine Bosley; Editing by Erica Billingham)
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