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KRONES AG Earnings Release 2015

Jul 23, 2015

251_rns_2015-07-23_7a94399a-7e2f-4da9-bc5a-588e6bef1971.html

Earnings Release

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News Details

Corporate | 23 July 2015 08:45

Krones AG: Krones raises earnings target for 2015 after strong first half

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

2015-07-23 / 08:45


Corporate news release

23 July 2015

Krones raises earnings target for 2015 after strong first half

– Revenue grew 4.8% year-on-year in the first six months of 2015 to EUR1,503.7 million

– EBT margin improved from 6.2% to 6.9% in the first half

– Krones has raised its EBT margin target for 2015 as a whole from 6.8% to 7.0%

Krones, the world’s leading manufacturer of filling and packaging technology, continued to grow profitably in the first half of 2015 despite the challenging macroeconomic environment. Revenue from January to June 2015 grew 4.8% to EUR1,503.7 million. Krones achieved the steepest improvement in the Central Europe, Middle East/Africa, and North and Central America sales regions. New orders picked up 4.3% year-on-year to EUR1,524.1 million in the period from January to June 2015. At 30 June 2015, the company had orders on hand totalling EUR1,099.5 million (previous year: EUR1,018.8 million).

Value programme increases profitability

Krones’ continued successful implementation of its Value strategy programme yielded a sharp increase in profitability in the first half of 2015. The company generated earnings before taxes (EBT) of EUR104.1 million. That is up 16.4% over the previous year. The EBT margin, the ratio of earnings before taxes to revenue, improved from 6.2% in the previous year to 6.9% in the reporting period. Net income increased 16.5% year-on-year in the first half of 2015 to EUR72.7 million. Earnings per share advanced from EUR1.98 to EUR2.32.

Krones improved its return on capital employed (ROCE), that is the ratio of EBIT to average net tied-up capital, to 17.0% in the first half of 2015 (previous year: 15.9%). The company maintains a very sound financial and capital structure. Krones had no bank debt at the end of June and held net cash and cash equivalents (cash and cash equivalents less bank debt) totalling EUR274.9 million. The equity ratio was 41.1% (previous year: 40.7%).

EBT margin forecast for 2015 as a whole raised to 7.0%

Based on the current forecasts for global economic growth and developments on the markets relevant to Krones, the company expects consolidated revenue to grow by 4% in 2015. Because profitability exceeded expectations in the first half of 2015, Krones is raising its EBT margin forecast for the year 2015 as a whole from 6.8% to 7.0%. Thus, Krones intends to achieve in 2015 the medium-term target of 7% that was set when the Value programme was launched. The company is aiming to increase its third strategy target, ROCE, to 17% this year.

Contact:

Olaf Scholz

Head of Investor Relations, Krones AG

Phone: +49 9401 70-1169

E-mail: [email protected]


2015-07-23 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.

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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: [email protected]
Internet: www.krones.com
ISIN: DE0006335003
WKN: 633500
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart
End of News DGAP News-Service
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380339  2015-07-23