DGAP-News

Krones AG: Krones reached its targets for 2014 and is optimistic for 2015

DGAP-News: Krones AG / Key word(s): Final Results
Krones AG: Krones reached its targets for 2014 and is optimistic for
2015

19.03.2015 / 07:15

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Corporate News Release
19 March 2015

Krones reached its targets for 2014 and is optimistic for 2015

- Revenue rose 4.9% in 2014 to EUR2.95 billion.

- Profitability, measured as the EBT margin, improved from 6.0% to 6.5%.

- Dividend for 2014 to increase over previous year's regular dividend,
from EUR1.00 to EUR1.25 per share.

- For 2015, Krones is expecting revenue growth of 4% and an EBT margin of
6.8%.

In the 2014 financial year, Krones, the world's leading manufacturer of
filling and packaging technology, met its forecasts for key financial
performance indicators. With revenue up by 4.9% to EUR2.95 billion, the
company exceeded its revenue target of + 4%. KRONES profited from its
broadly diversified portfolio of products and services and its
international operative capabilities. The company benefited from its strong
competitive position in the newly industrialising countries. The share of
revenue that Krones earns in the emerging markets rose in 2014 from 58.2%
in the preceding year to 60.4%.

New orders grew more steeply than revenue in 2014, rising by 8.2% to reach
EUR3.04 billion (previous year: EUR2.81 billion). At 31 December 2014,
Krones had orders on hand totalling EUR1.08 billion (previous year:
EUR992.4 million).

Profitability again improved

Despite continued price pressures, Krones significantly improved its
profitability in 2014. Key here were the measures taken under the Value
strategy programme, which have upgraded corporate efficiency. Earnings
before taxes (EBT) in 2014 climbed by 13.1% year-on-year, from EUR169.7
million to EUR191.8 million. Krones improved its EBT margin - the ratio of
earnings before taxes to revenue - from 6.0% in the previous year to 6.5%.
With that, the company exceeded the forecast figure of "around 6.2%". Net
income improved 13.6% year-on-year in the reporting period to EUR135.7
million. That corresponds to earnings per share of EUR4.30 (previous year:
EUR3.84).

With revenue of EUR2,492.7 million, the EBT margin in the company's core
segment advanced by a very satisfying 7.8%. The two smaller segments'
operating figures were in the black for the year 2014 as a whole. Process