30.04.2014
Krones AG DE0006335003
DGAP-News: Krones AG: Krones confirms growth and earnings targets for 2014 after strong first quarter
DGAP-News: Krones AG / Key word(s): Quarter Results
Krones AG: Krones confirms growth and earnings targets for 2014 after
strong first quarter
30.04.2014 / 07:50
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30.04.14
Corporate News Release
Krones confirms growth and earnings targets for 2014 after strong first
quarter
Krones, the world's market leader for beverage filling and packaging
technology, has got the financial year 2014 off to a good start. In the
period from January to March, revenue improved 2.9% year-on-year to
EUR703.0 million. That puts the revenue gain within the company's seasonal
expectations. After a slightly weaker orders intake in the fourth quarter
of 2013, demand for Krones' products and services was up again considerably
in the first quarter of 2014. New orders were up 7.8% on the year-earlier
quarter to EUR738.8 million. The company had orders on hand totalling
EUR1,028.2 million at 31 March 2014 (previous year: EUR1,001.1 million).
Krones got no support from price levels in the first quarter. Nevertheless,
the company was able to improve earnings as planned, thanks in part to
achievements made under the "Value" programme. Earnings before taxes (EBT)
rose 10.8% year-on-year, from EUR38.9 million to EUR43.1 million. Krones'
EBT margin for the period from January to March 2014 was 6.1% (previous
year: 5.7%). Krones improved EBT in all three segments year-on-year in the
first quarter of 2014. The EBT margin in the company's core segment widened
from 6.9% to 7.2%. The company was able to turn around its process
technology segment and only narrowly missed getting the "Kosme" segment
into the black in terms of EBT.
Net income improved 11.2% year-on-year in the first quarter of 2014 to
EUR29.9 million. That corresponds to earnings per share of EUR0.95
(previous year: EUR0.89). Free cash flow improved by EUR41.9 million
year-on-year in the first quarter to -EUR40.2 million. In Krones' business,
it is not unusual for free cash flow to be negative at various points
throughout the year. Krones increased its return on capital employed
(ROCE), that is the ratio of earnings before taxes and interest (EBIT) to
average net tied-up capital, to 15.4% (previous year: 15.1%) thanks in
large part to higher earnings.
Outlook
Overall, based on the development of the markets relevant to Krones and the
continuing uncertain economic outlook, the company expects revenue to grow
by 4% in 2014. Krones expects only little support from price levels.
Earnings performance should increase further. Krones expects the EBT margin
(earnings before taxes to revenue) to be around 6.2%. The company intends
to increase its third strategy target, ROCE, to more than 16% in 2014.
Krones published its Interim Report for the first quarter of 2014 and its
Annual Report for 2013 online today at
http://www.krones.com/en/investor_relations/reports.php. The audited
figures for the year 2013 are unchanged from the preliminary figures that
were reported on 19 March 2014.
Contact:
Olaf Scholz
Senior Vice President of Investor Relations Krones AG
Phone: +49 9401 70-1169
E-mail: [email protected]
End of Corporate News
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30.04.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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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: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart
End of News DGAP News-Service
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