KRONES AG — Earnings Release 2007

Jul 25, 2007

News Details

Corporate | 25 July 2007 07:15

KRONES AG: Solid growth for Krones in the first half of 2007

Krones AG / Half Year Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

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Krones AG, Neutraubling, Germany, the world’s market leader for beverage
filling and packaging technology, progressed its thrust for growth in the
first half of 2007.
Compared to the preceding year, sales rose by 14.5 % to reach 1,053.9
million euros. During the period under review, the company profited from
general economic growth worldwide and the continuing boom in its chosen
sector. The trend for beverages to be bottled increasingly in plastic
containers (PET) continued unbroken during the period under review. Krones
was swift to put the requisite corporate capabilities in place and is the
world’s market leader for PET lines.

Krones achieved significantly increased sales during the first six months
of 2007 not only in boom regions like China and Russia, but also in South
Amercia and in Scandinavia. Turnover in Germany, too, which in the period
under review accounted for 19.5 % (preceding year: 15.8 %) of total
revenues, was up on the previous year. In the USA and Western Europe, sales
roughly maintained the preceding year’s exceptionally high level during the
first six months of 2007.

In the second quarter of 2007, Krones’ sales, at € 548.9 m, were 17.1 % up
on the preceding year’s equivalent figure.

High growth in order bookings and backlog

Major orders from Germany and abroad saw order bookings improve during the
year’s first half by 17.8 % on a like-for-like basis, to 1,109.5 million
euros. Order bookings in the months of April to June 2007 were 21.8 % up on
the preceding year’s figure.

On 30 June 2007, orders on hand at Krones totalled € 802.3 m, 12.7 % up on
the preceding year’s figure. Compared to the end of 2006, the order book
was fuller by € 55.6 m. The high order backlog provides a more solid
foundation for the
company’s corporate planning, and enables it to attach higher priority to
profitability in the orders it accepts.

Pretax earnings up by 25.7 %

Krones’ earnings performance continued to improve during the first half of
2007. Earnings before taxes were up by 25.7 % compared to the first six
months of 2006,
at € 75.7 m. The return on sales before taxes (EBT margin) reached 7.2 %
(preceding year’s period: 6.5 %), exceeding the original target of 7 %.

At € 39.6 m, earnings before taxes were up on the preceding year’s level by
33.3 % in the second quarter of 2007. The EBT margin reached 7.2 %.

Profits after taxes improved during the year’s first half by 24.9 % to
reach € 47.6 m (preceding year: € 38.1 m). On a quarterly comparison,
the figure increased to € 24.7 m in the year’s second quarter, following
€ 19.0 m in the equivalent periodof 2006, a rise of 30 %.

Earnings per share in the first half of 2007 were € 4.47 (preceding year:
€ 3.57) and in the year’s second quarter € 2.31 (preceding year: € 1.79).

Outlook

With the sales and earnings achieved in the first half of 2007, Krones has
come a good deal closer to its targets for the 2007 business year. The
company is benefiting from the auspicious macro-economic climate. In
addition, its strong position as a provider of holistically conceived job
packages is paying off.

Krones anticipates that in the 2007 business year its sales will for the
first time significantly exceed € 2 bn. But the focus continues to be not
only on sales growth alone, but also on profitability. Krones has already
upgraded its corporate efficiency, and will be continually improving its
internal processes.

In the ongoing business year, Krones is aiming for a significant
improvement in earnings before taxes. Return on sales before taxes should
reach more than 7 %. For the return on capital employed (ROCE), Krones is
targeting 20 %.

The complete semi-annual report can be downloaded from www.krones.com.

Your contact person:

Hermann Count of Castell-Rüdenhausen
Head of Corporate Communications, Krones AG
Tel.: +49 9401 703258
Mobile: +49 170 6305916
Email: hermann.castell@krones.com

Contact:
Hermann Graf zu Castell-Rüdenhausen
Leiter Corporate Communications - Investor Relations
Tel.: +49 (0) 9401 - 703258
E-Mail: Hermann.Castell@krones.com

DGAP 25.07.2007

Language: English
Issuer: Krones AG
Böhmerwaldstraße 5
93073 Neutraubling Deutschland
Phone: +49 (0)9401 703258
Fax: +49 (0)9401 703786
E-mail: investor-relations@krones.com
Internet: www.krones.com
ISIN: DE0006335003
WKN: 633500
Indices: MDAX
Listed: Amtlicher Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart

End of News DGAP News-Service

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