24.07.2014
Krones AG DE0006335003
DGAP-News: Krones AG: Krones continues to grow profitably
DGAP-News: Krones AG / Key word(s): Half Year Results
Krones AG: Krones continues to grow profitably
24.07.2014 / 07:29
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24 July 2014
Krones continues to grow profitably
- Revenue increases 4.2% to EUR1,435.5 million in the first half
- New orders improve by 5.7%
- Earnings continue to gain strength - EBT margin up from 5.8% to 6.2%
- Krones is cautiously optimistic about achieving its targets for 2014
Krones, the world's market leader in beverage filling and packaging
technology, improved all key financial performance indicators over the
previous year in the first half of 2014. At EUR732.5 million, the company's
revenue was up 5.5% year-on-year in the period from April to June 2014.
First-quarter revenue growth was 2.9%. In all, revenue rose 4.2%
year-on-year in the first half of 2014, from EUR1,377.5 million to
EUR1,435.5 million. The emerging markets contributed an important part of
this growth.
Demand for Krones' products and services remained high in the period from
January to June 2014. New orders increased 5.7% year-on-year to EUR1,461.9
million. Given the strong demand, the company's orders backlog grew despite
the increase in revenue. At the end of June 2014, Krones had orders on hand
totalling EUR1,018.8 million (previous year: EUR1,004.6 million).
EBT margin up from 5.8% to 6.2%
Although Krones' markets were extremely competitive in the first half of
2014 and there was no support from price levels, the company was able to
strengthen earnings performance as planned. The accomplishments made under
the Value strategy programme were key to this improvement. Earnings before
taxes (EBT) rose 12.2% from EUR79.7 million in the previous year to EUR89.4
million. With that, the EBT margin - the ratio of earnings before taxes to
revenue - improved from 5.8% in the previous year to 6.2% in 2014. Krones'
net income also increased 12.2%, to EUR62.4 million. Earnings per share
advanced from EUR1.81 in the previous year to EUR1.98 in the reporting
period.
Krones improved its return on capital employed (ROCE), that is the ratio of
EBIT to average net tied-up capital, to 15.9% in the first half of 2014
(previous year: 15.6%).
In June 2014, Krones paid out an exceptionally high dividend. Nevertheless,
the company still has high cash and cash equivalents and a very sound
financial and capital structure.
At the end of June, Krones had no bank debt and held net cash and cash
equivalents (cash and cash equivalents less bank debt) of EUR157.2 million.
The company's equity ratio was 42.4% at the end of the first half (31
December 2013: 42.6%).
Krones is cautiously optimistic about achieving its targets for 2014
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 does not expect any support from price levels.
Earnings performance should continue to increase. Krones expects the EBT
margin to be around 6.2%.
For its third financial target, Krones intends to achieve a ROCE of over
16% this year. The company's medium- to long-term target is 20%.
Details on the first half/second quarter of 2014 can be found in the
quarterly report, which is available at
http://www.krones.com/en/investor_relations/reports.php
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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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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279107 24.07.2014
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