KRONES AG — Earnings Release 2002

May 7, 2002

News Details

Corporate | 7 May 2002 10:31

Krones AG english

1st-Quarter Report for 2002 / KRONES’ growth continues Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– 1st-Quarter Report for 2002 / KRONES’ growth continues With double-figure gains in sales and earnings during the first three months of the year, the Krones Group started the year 2002 in excellent form. Sales rose by more than 16 per cent, and profits in the year’s first quarter were up by 32 per cent. The world’s market leader for beverage bottling/canning and packaging machinery has thus once again improved on its figures for the past two record- breaking years. High domestic demand boosts sales revenues by 16 % Consolidated sales in the first three months of 2002 came to 344.8 million euros, 16.6 per cent up on the figure for last year’s equivalent period (1st quarter of 2001: 295.7 million euros). Sales of machinery and complete lines in Germany were particularly buoyant; the domestic proportion of total sales has risen from 18 to 32 per cent. The most important sales markets abroad, besides the European Union, were North America and Asia. Market position strengthened by increased order bookings By the end of March 2002, the KRONES Group had booked new orders worth 346.5 million euros. This figure is approximately another 2.7 per cent up on the high order bookings of 337.4 million euros at the preceding year’s equivalent date. Krones continues to be conspicuously export-oriented: the group’s steepest growth was achieved in North America, but it also performed well in Eastern Europe, plus the Near East and Asia, upgrading its market position by winning important contracts. The group’s orders on hand totalled 631.7 million euros on 31 March 2002. The preceding year’s record figure of 636.3 million euros was thus almost repeated. Modernisation drive ups earnings by 32 per cent Consolidated earnings after taxes improved by 32.0 per cent to reach 16.9 million euros during the first quarter of 2002. In the first three months of the preceding year, profits had been 12.8 million euros. This rise in earnings validates the company’s modernisation drive. With a high level of capital expenditure and appropriate organisational changes, working procedures in the group have been purposefully optimised over the past years. For the 2002 business year as a whole, the prospects for earnings are concomitantly propitious. The job market, too, is profiting from KRONES’ growth Krones has also matched its staffing levels to the group’s healthy performance. Since 31 March of the preceding year, KRONES and its subsidiaries have hired 349 new professionals. With a total payroll of 8,428, the company is employing 4.3 per cent more people than in March 2001 (8,079). Workforce upsizing was particularly evident at KRONES AG (+ 279) and KETTNER (+133). Streamlining of the production operation at KRONES USA meant that the payroll there was reduced by 79. KRONES stock still climbing The extremely upbeat business prospects are also being reflected in higher valuations for the KRONES shares on the stock market. Since the beginning of the year, the KRONES preference shares, listed in the MDAX, have gained another 20 per cent, following a substantial rise (+ 63 per cent) in 2001. Investing in a profitable future For its German facilities alone, KRONES has budgeted capital expenditure of around 65 million euros in the current business year – 30 per cent more than in 2001. This growth strategy expresses an optimistic appraisal of the company’s future performance. With innovative products – not least for the non-beverage sector – KRONES is tapping into new markets, putting its growth on broader foundations. The special efforts made in research and development have enabled KRONES to further upgrade its leading position on the market. All this points to a profitable future. The Executive Board anticipates a continual improvement in the sales-earnings ratio. end of message, (c)DGAP 07.05.2002