KRONES AG — Earnings Release 2008

Mar 18, 2009

News Details

Ad-hoc | 18 March 2009 18:59

Krones publishes its provisional figures for the 2008 business yearKrones AG:

Krones AG / Preliminary Results

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Sales and earnings up yet again in 2008

Neutraubling, Germany, 18 March 2009 - Krones AG, the world's market leader
for beverage filling and packaging equipment, has yet again turned in a
very good result for the 2008 business year, as demonstrated by the
provisional figures involved. Consolidated sales were up by 10.5 % over the
previous year, to reach 2,381.4 million euros. Order bookings, too, at
2,326.5 million euros, rose above the preceding business year's level of
2,300.2 million euros, a plus of 1.1 %. In the year's first six months,
particularly, Krones, a full-service vendor, profited from the buoyant
demand for complete-system packages.

Earnings before taxes (EBT) came to 156.1 million euros in 2008, thus
exceeding the previous year's figure by 1.6 %, with the EBT margin falling
from 7.1 % to 6.6 %. Among the determinant factors behind this decrease
were higher personnel expenditure and change-over costs, incurred during
the year's fourth quarter and aimed at preparing the company for the tough
challenges awaiting us in the 2009 business year. Profits after taxes rose
by 4.6 %, from 101.8 to 106.5 million euros.

In 2008, Krones' cash flow showed a marked improvement, with cash flow from
ongoing business operations rising by 79.6 million euros to reach 183.8
million euros. Free cash flow was upped from 16.1 million euros to 78.4
million euros. At the end of 2008, Krones possessed liquid funds amounting
to 108.4 million euros (preceding year: 53.8 million euros) and had
practically no liabilities to banks.

Krones is preparing for a difficult business year 2009

In the wake of the international economic crisis, Krones, too, has noticed
an increasingly lower propensity to buy on the part of its customers
worldwide. Following a fall in order bookings of a moderate 15 % in 2008's
fourth quarter, we anticipate incoming orders will fall by about one third
in this year's first quarter, as compared to a good first quarter in 2008.

Since the present-day imponderabilities are unprecedented, it is impossible
as yet to make a soundly based forecast for consolidated earnings in 2009.
We have to proceed on the assumption that the worldwide economic and
financial crises will perceptibly affect our sales and earnings as the year
goes on. In the event of our customers' reluctance to invest persisting to
the extent currently observable, with a concomitant slump in turnover, we
can no longer entirely rule out a negative result for the group in 2009.

During the fourth quarter of 2008, the Executive Board had already embarked
upon a comprehensive range of initiatives aimed at counteracting the fall
in earnings, which must inevitably be expected as a result of this
development, and at enabling Krones to emerge from the ongoing crisis
better and faster, thus extending its competitive lead over its rivals.

The group's soundly based asset situation, backed up by its stable
finances, is one of the crucial factors providing some reassuring solidity
in the ongoing global crisis.

Taking a long-term view, definite growth opportunities can be expected in
our markets. All our products and services are closely connected to
consumption, i.e. to eating and drinking, thus profiting indirectly from
the growth of the Earth's population, and from increasing global affluence.

September 2009 will see the most important sectoral trade fair for Krones
worldwide, the 'drinktec' in Munich. Krones will be using this event as a
timely opportunity to convince our customers of our innovative vigour and
our solutional competence.

The company is confident that once the general economic crisis has been
overcome it will very swiftly resume its familiar strong performance.

Contact:
Olaf Scholz
Leiter Investor Relations
Tel.: +49 9401 70-1169
Mobil: +49 151 12248730
E-Mail: olaf.scholz@krones.com

18.03.2009 Financial News transmitted by DGAP

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: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart

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