KRONES AG — Earnings Release 2013

Jul 25, 2013

News Details

Ad-hoc | 25 July 2013 07:58

Krones AG: Krones raises earnings target for 2013 after strong second quarter

Krones AG / Key word(s): Half Year Results

25.07.2013 07:58

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Krones, the world's market leader for beverage filling and packaging
technology, accelerated its growth in the second quarter of 2013 despite
the challenging macroeconomic environment. From April to June 2013, the
company's revenue increased 8.3% to EUR694.1 million. Revenue rose 6.8%
year-on-year in the first half of 2013, from EUR1,289.7 million to
EUR1,377.5 million.

New orders were up 4.1% year-on-year to EUR1,382.8 million in the period
from January to June 2013, due primarily to continued high demand from the
emerging markets. At 30 June 2013, the company had an orders backlog of
EUR1,004.6 million (previous year: EUR980.4 million).

Krones improved profitability considerably. In the first half of 2013, the
company generated earnings before taxes (EBT) of EUR79.7 million. That is
up 24.5% over the previous year. The EBT margin, the ratio of earnings
before taxes to revenue, improved from 5.0% in the previous year to 5.8%.
Net income improved 25.8% in the first half of 2013 to EUR55.6 million. As
a result, earnings per share were up from EUR1.47 to EUR1.81.

Krones improved its return on capital employed (ROCE), that is the ratio of
EBIT to average net tied-up capital, to 15.6% in the first half of 2013
(previous year: 13.2%). The company's equity ratio was 43.5% at the end of
the first half (31 December 2012: 37.8%). Krones had no bank debt at the
end of June and held net cash and cash equivalents (cash and cash
equivalents less bank debt) of EUR128.6 million.

Outlook

The first successes as a result of measures taken under Value have Krones'
earnings slightly better than planned at the end of the first half of 2013.
For this reason, the Executive Board has raised its forecast for the EBT
margin for the year 2013 as a whole to between 5.8% and 6.0% (previous
forecast: over 5.5%). With that, Krones has made good progress this year
toward its medium-term target of 7%. Because the overall economic outlook
remains uncertain, the company is leaving its forecast for revenue growth
for 2013 at 4%. Krones expects no support from price levels.

Krones is confident that it will achieve its third strategy target, ROCE of
15%, in 2013. The company's medium- to long-term target is 20%. Krones also
expects free cash flow for the year 2013

as a whole to be improved over the previous year on higher earnings and
lower working capital.

Details on the first half/second quarter of 2013 can be found in the
quarterly report, which is available at www.krones.com
Contact:
Olaf Scholz
Senior Vice President
Investor Relations
Krones AG
Phone: +49 9401 70 1169
E-mail: olaf.scholz@krones.com

25.07.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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Language: English
Company: Krones AG
Böhmerwaldstraße 5
93073 Neutraubling
Germany
Phone: +49 (0)9401 701169
Fax: +49 (0)9401 709 1 1169
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

End of Announcement DGAP News-Service

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