KRONES AG — Earnings Release 2006

Feb 27, 2007

News Details

Ad-hoc | 27 February 2007 18:01

KRONES AG: Significant increases in sales and profits in 2006

Krones AG / Preliminary Results/Final Results

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The issuer is solely responsible for the content of this announcement.

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Dividend to rise from 1.40 to 1.60 euros per share

In 2006, the plant and machinery manufacturer Krones, Neutraubling,
Germany, continued its series of improved results in terms of sales and
profits for the seventh year in succession. The 9,165 employees (+ 1.5 %
compared with the previous year) generated a turnover of 1.91 billion
euros, approximately 12.7 % up on the previous year’s figure. Net income
for the year grew by 20 %, compared with the previous year, subject to
confirmation by the accountants.

The high demand for the products of the world’s market leader in filling
and packaging technology is reflected in the orders received, which
increased in 2006 by 13.3 % to reach approximately € 1.97 bn (2005: € 1.74
bn).
The net liquidity – almost 57 million € at the end of the year – reflects
the company’s financial performance, with no liabilities to the banks.

Increased dividend and positive stock price development

The capital market has gained substantially from this development. In 1999,
the Krones share started at a price of € 19.80. With a most recent price of
€ 133.25 (20 February 2007), the Krones share has yielded capital gains of
more than 570 %. For 2006, a dividend of € 1.60 (2005: € 1.40) is to be
distributed per share.

Outlook

The rates of growth and profits show Krones’ strength in a sector that was
dominated by fierce price competition.
Due to the order situation, the Executive Board is confident of achieving a
return on sales after tax of 7 % for the first half of 2007 (first half of
2006: approx. 6.5 %). In the first six months of 2007, Krones’ turnover
will reach approximately € 1 bn (first half of 2006: € 920 million).

This forecast is backed up by a backlog totalling € 747 million by early
2007 (+ 8 % compared with the previous year) and by the strong order inflow
during the first two months of the ongoing year.

With internal measures, such as the innovation thrust and the pact for
safeguarding employment and the production facilities, Krones has
significantly increased its efficiency and created a basis for future
growth in profits. If the price situation does not worsen considerably, the
Executive Board expects a medium–term return on sales before tax of at
least 7 %.

In parallel to this, Krones is targeting an annual growth in sales of at
least 5 to 10 %. The company expects above-average growth rates in process
technology and in the high-yield Life-Cycle-Services sector. Besides
organic growth, Krones also plans medium-term business expansion with
further acquisitions.

Brief portrait: the KRONES Group
The Krones Group, headquartered in Neutraubling, Germany, plans, develops,
and manufactures machines and complete lines for the fields of process
technology, bottling, canning and packaging, plus intralogistics.

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

DGAP 27.02.2007

Language: English
Issuer: Krones AG
Böhmerwaldstraße 5
93073 Neutraubling Deutschland
Phone: +49 (0)9401 703258
Fax: +49 (0)9401 703496
E-mail: investor-relations@krones.de
WWW: www.krones.com
ISIN: DE0006335003
WKN: 633500
Indices: MDAX
Listed: Amtlicher Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg, Stuttgart

End of News DGAP News-Service

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