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Krones AG: Krones aims to upgrade the profitability of its Process Technology Segment

DGAP-News: Krones AG / Key word(s): Miscellaneous
Krones AG: Krones aims to upgrade the profitability of its Process
Technology Segment

25.11.2015 / 11:00

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Corporate News Release
25.11.2015

Krones aims to upgrade the profitability of its Process Technology Segment

Krones, the world's leading manufacturer of filling and packaging
technology, intends to provide a sustainable boost to the profitability of
its "Machines and Lines for Beverage Production / Process Technology"
segment, which in 2014 achieved earnings before taxes (EBT) of 3.3 million
euros (share of consolidated EBT: 1.7 %).

The optimisation measures will focus firstly on improving key work
sequences, like drawing up quotations, processing orders and managing
projects, and secondly on cutting costs. Above and beyond that, Krones is
significantly reducing its degree of vertical integration, making extensive
use of its international vendor structure for this purpose. Another goal is
to further expand the regional structures involved, which is essential so
as to be able to offer a larger number of regional products at competitive
prices.

The action package planned is scheduled for implementation by 2017, with
the first steps already being expedited. Krones estimates that accruable
expenditure for the whole package will total two to three million euros,
and will be forming accruals for this amount in the fourth quarter of 2015.

The Krones Group's EBT margin target for 2015 as a whole, of 7.0 %, will
not be affected by this. Overall, Krones anticipates an EBT margin of at
least 4 % for its Process Technology Segment as from 2017 (2014: 0.9 %).

Contact person:
Olaf Scholz
Head of Investor Relations at KRONES AG
Tel.: [phone]
Email: [e-mail]



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25.11.2015 Dissemination of a Corporate News, transmitted by DGAP - a
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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
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416089 25.11.2015