DGAP-News

Krones AG: Krones raises earnings target for 2015 after strong first half

DGAP-News: Krones AG / Key word(s): Change in Forecast/Half Year
Results
Krones AG: Krones raises earnings target for 2015 after strong first
half

23.07.2015 / 08:45

---------------------------------------------------------------------

Corporate news release
23 July 2015

Krones raises earnings target for 2015 after strong first half

- Revenue grew 4.8% year-on-year in the first six months of 2015 to
EUR1,503.7 million

- EBT margin improved from 6.2% to 6.9% in the first half

- Krones has raised its EBT margin target for 2015 as a whole from 6.8%
to 7.0%

Krones, the world's leading manufacturer of filling and packaging
technology, continued to grow profitably in the first half of 2015 despite
the challenging macroeconomic environment. Revenue from January to June
2015 grew 4.8% to EUR1,503.7 million. Krones achieved the steepest
improvement in the Central Europe, Middle East/Africa, and North and
Central America sales regions. New orders picked up 4.3% year-on-year to
EUR1,524.1 million in the period from January to June 2015. At 30 June
2015, the company had orders on hand totalling EUR1,099.5 million (previous
year: EUR1,018.8 million).

Value programme increases profitability

Krones' continued successful implementation of its Value strategy programme
yielded a sharp increase in profitability in the first half of 2015. The
company generated earnings before taxes (EBT) of EUR104.1 million. That is
up 16.4% over the previous year. The EBT margin, the ratio of earnings
before taxes to revenue, improved from 6.2% in the previous year to 6.9% in
the reporting period. Net income increased 16.5% year-on-year in the first
half of 2015 to EUR72.7 million. Earnings per share advanced from EUR1.98
to EUR2.32.

Krones improved its return on capital employed (ROCE), that is the ratio of
EBIT to average net tied-up capital, to 17.0% in the first half of 2015
(previous year: 15.9%). The company maintains a very sound financial and
capital structure. Krones had no bank debt at the end of June and held net
cash and cash equivalents (cash and cash equivalents less bank debt)
totalling EUR274.9 million. The equity ratio was 41.1% (previous year:
40.7%).

EBT margin forecast for 2015 as a whole raised to 7.0%

Based on the current forecasts for global economic growth and developments
on the markets relevant to Krones, the company expects consolidated revenue
to grow by 4% in 2015. Because profitability exceeded expectations in the
first half of 2015, Krones is raising its EBT margin forecast for the year
2015 as a whole from 6.8% to 7.0%. Thus, Krones intends to achieve in 2015
the medium-term target of 7% that was set when the Value programme was
launched. The company is aiming to increase its third strategy target,
ROCE, to 17% this year.

Contact:
Olaf Scholz
Head of Investor Relations, Krones AG
Phone: [phone]
E-mail: [e-mail]



---------------------------------------------------------------------

23.07.2015 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.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------


Language: English
Company: Krones AG
Böhmerwaldstraße 5
93073 Neutraubling
Germany
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
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, Stuttgart


End of News DGAP News-Service
---------------------------------------------------------------------
380339 23.07.2015