02.03.2017
Krones AG DE0006335003
DGAP-News: Krones AG: Krones achieved its 2016 growth and earnings targets
DGAP-News: Krones AG / Key word(s): Preliminary Results
Krones AG: Krones achieved its 2016 growth and earnings targets
02.03.2017 / 07:29
The issuer is solely responsible for the content of this announcement.
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Corporate news release
02 March 2017
Krones achieved its 2016 growth and earnings targets
- Revenue increased 6.9% to EUR3.39 billion, order intake increased 7.9%.
- Profitability was stable, with the EBT margin once again at 7.0%.
- Krones generated free cash flow of EUR49.2 million in 2016.
- Revenue and earnings are expected to increase further in 2017.
Krones, the world's leading manufacturer of filling and packaging
technology, continued its stable growth in 2016. Revenue increased 6.9%
year-on-year from EUR3,173.5 million to EUR3,391.3 million. The increase is
partly due to acquisitions. Adjusted for acquisitions, revenue growth came
to 4.2%. With that, Krones has slightly exceeded its growth target of 3%
for the year 2016. Our comprehensive range of products and services and our
strong international presence continue to support the company's growth.
Order intake increased 7.9% year-on-year to EUR3,441.3 million in 2016. The
increase is partly due to acquisitions. Adjusted for acquisitions, order
intake increased 5.2%. At 31 December 2016, the company had orders on hand
totalling EUR1.14 billion, which is up 4.6% on the previous year (EUR1.09
billion).
EBT margin stable despite heavy competition
Krones increased earnings again in 2016 despite the highly competitive
markets. Earnings before taxes (EBT) rose 6.4% year-on-year, from EUR223.3
million in 2015 to EUR237.6 million in 2016. The EBT margin remained
unchanged year-on-year at 7.0%. Thus, Krones met its EBT margin target for
2016. As expected, market prices provided no support. Krones was able to
keep its EBT margin stable in the reporting period partly due the effects
from the Value strategy programme. Net income improved 8.2%, from EUR156.3
million in the previous year to EUR169.1 million in 2016. Earnings per
share rose to EUR5.40 (previous year: EUR4.98).
Krones has a very robust financial and capital structure
Krones' return on capital employed (ROCE), the ratio of EBIT to average net
capital employed, came to 17.0% in 2016 (previous year: 17.7%). With that,
Krones did not achieve its ROCE target of 18% for 2016 because of the
higher than expected increase in the capital employed. The relatively high
positive cash flow from operating activities in the fourth quarter of 2016
resulted in free cash flow of EUR49.2 million for the year as a whole
(previous year: EUR70.7 million).
At the end of 2016, Krones held cash and cash equivalents totalling
EUR368.9 million (previous year: EUR364.6 million) and had no bank debt.
The company's equity ratio was 39.9% on 31 December 2016 (previous year:
41.0%). Overall, Krones continues to possess a very robust financial and
capital structure.
All figures stated here are provisional and may change following completion
of the audit.
Outlook
Based on the current macroeconomic prospects and developments in the
markets relevant to Krones, the company expects consolidated revenue to
grow by 4% in 2017. The company expects earnings to rise further and the
EBT margin to remain stable at 7.0% this year. The forecast for the
company's new financial performance target, working capital to sales, is
27% for 2017. Possible acquisitions are not included in these forecasts for
2017.
Krones will publish its annual report for 2016 on 23 March 2017.
Key Figures for 2016 2015 Change
2016
Revenue EUR million 3,391.3 3,173.5 +6.9%
Order intake EUR million 3,441.3 3,189.0 +7.9%
Orders on hand at EUR million 1,144.7 1,094.6 +4.6%
31 December
EBITDA EUR million 320.8 305.3 +5.1%
EBIT EUR million 228.0 216.9 +5.1%
EBT EUR million 237.6 223.3 +6.4%
EBT margin % 7.0 7.0 -
Consolidated net EUR million 169.1 156.3 +8.2%
income
Earnings per share EUR 5.40 4.98 +8.4%
Capital EUR million 111.3 102.6 +EUR8.7
expenditure for million
PP&E
and intangible
assets
Free cash flow EUR million 49.2 70.7 -EUR21.5
million
Net cash and cash EUR million 368.9 364.6 +EUR4.3
equivalents* million
at 31 December.
ROCE % 17.0 17.7 -70
basis points
Employees at 31
December
Worldwide 14,443 13,346 +1,097
Germany 10,061 9,767 +294
Outside Germany 4,382 3,579 +803
* Cash and cash equivalents less debt
Contact:
Olaf Scholz
Head of Investor Relations, Krones AG
Phone: +49 9401 70-1169
E-mail: [email protected]
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02.03.2017 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.
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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, Tradegate Exchange
End of News DGAP News Service
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549627 02.03.2017
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