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KRONES AG Earnings Release 2016
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Earnings Release
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Corporate | 21 July 2016 07:30
Krones AG: Krones increased revenue and earnings in the first half of 2016
DGAP-News: Krones AG / Key word(s): Half Year Results
2016-07-21 / 07:30
The issuer is solely responsible for the content of this announcement.
Corporate news release
21 July 2016
Krones increased revenue and earnings in the first half of 2016
– Revenue in the period from January to June 2016 grew 3.8% to EUR1,560.3 million.
– New orders improved 5.1% to EUR1,602.4 million.
– Earnings before taxes (EBT) climbed 3.1%. The EBT margin was stable at 6.9%.
– Krones is standing by its forecast for 2016 as a whole, predicting 3% revenue growth and an EBT margin of 7.0%.
Krones, the world’s leading manufacturer of filling and packaging technology, grew as forecast in the first half of 2016 despite mounting economic uncertainties. In the period from January to June 2016, revenue grew 3.8% to EUR1,560.3 million. The company’s growth in the Middle East/Africa, Central and Eastern Europe, and North and Central America regions was stronger than overall growth . After a weak start to the year, revenue in China picked up in the second quarter of 2016.
New orders at Krones increased 5.1% in the first half of 2016 to EUR1,602.4 million. The strongest orders growth was in Europe. Customers in North America and China were also investing heavily. New orders were down in South America and Russia/CIS. At the end of June 2016, the company had orders on hand totalling EUR1,136.7 million (previous year: EUR1,099.5 million).
Stable margin despite intense competition
As expected, Krones’ earnings received no support from prices in the first half of 2016. The 3.1% year-on-year improvement in earnings before taxes (EBT) in the period from January to June 2016, from EUR104.1 million to EUR107.3 million, resulted entirely from the successful implementation of the Value strategy programme. Krones was able to keep its EBT margin steady at 6.9% in the first half of 2016 despite intense competition on the markets. Net income increased 2.3% year-on-year to EUR74.4 million. Earnings per share rose to EUR2.37 (previous year: EUR2.32).
Krones’ return on capital employed (ROCE), that is the ratio of EBIT to average net tied-up capital, came to 15.6% in the first half of 2016 (previous year: 17.0%).
Krones is standing by its forecast for 2016 as a whole
Based on the current macroeconomic prospects and developments on the markets relevant to Krones, the company expects consolidated revenue to grow by 3% in 2016. Krones’ earnings are set to improve yet again this year. The Executive Board expects the company to achieve an EBT margin of 7.0% in 2016. Krones aims to increase its third strategy target, ROCE, to 18% in 2016.
Krones has published the complete Quarterly Report for the second quarter of 2016 online at http://www.krones.com/en/investor_relations/reports.php.
| Key figures for H1 2016 | 1 Jan - 30 Jun 2016 |
1 Jan - 30 Jun 2015 |
Change | |
| Revenue | EUR million | 1,560.3 | 1,503.7 | +3.8% |
| New orders | EUR million | 1,602.4 | 1,524.1 | +5.1% |
| Orders on hand at 30 June | EUR million | 1,136.7 | 1,099.5 | +3.4% |
| EBITDA | EUR million | 147.2 | 144.1 | +2.2% |
| EBIT | EUR million | 103.3 | 101.2 | +2.1% |
| EBT | EUR million | 107.3 | 104.1 | +3.1% |
| EBT margin | % | 6.9 | 6.9 | – |
| Net income | EUR million | 74.4 | 72.7 | +2.3% |
| Earnings per share | EUR | 2.37 | 2.32 | +2.2% |
| Capital expenditure for PP&E and intangible assets | EUR million | 34.1 | 30.2 | EUR+3.9 million |
| Free cash flow | EUR million | -169.2 | - 22.0 | EUR-147.2 million |
| Net cash and cash equivalents at 30 June* | EUR million | 149.6 | 274.9 | EUR-125.3 million |
| ROCE (liabilities side) | % | 15.6 | 17.0 | – |
| ROCE (assets side) | % | 14.2 | 15.0 | – |
| Employees at 30 June | ||||
| Worldwide | 13,742 | 12,854 | +888 | |
| Germany | 9,734 | 9,458 | +276 | |
| Outside Germany | 4,008 | 3,396 | +612 | |
| * Cash and cash equivalents less debt |
| Key figures for Q2 2016 | 1 Apr - 30 Jun 2016 |
1 Apr - 30 Jun 2015 |
Change | |
| Revenue | EUR million | 788.2 | 764.8 | +3.1% |
| New orders | EUR million | 780.2 | 737.1 | +5.8% |
| EBITDA | EUR million | 71.2 | 73.6 | -3.3% |
| EBIT | EUR million | 49.1 | 52.0 | -5.6% |
| EBT | EUR million | 52.2 | 53.9 | -3.2% |
| EBT margin | % | 6.6 | 7.0 | – |
| Net income | EUR million | 36.0 | 37.7 | -4.5% |
| Earnings per share | EUR | 1.15 | 1.21 | -5.0% |
Contact:
Olaf Scholz
Head of Investor Relations at Krones AG
Phone: +49 9401 70-1169
E-mail: [email protected]
2016-07-21 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP 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: | [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, Hanover, Stuttgart; Terminbörse EUREX |
| End of News | DGAP News Service |