Krones AG: Krones improves operating earnings

Krones AG  / Key word(s): Quarter Results

24.10.2012 07:18

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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The issuer is solely responsible for the content of this announcement.

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Ad-hoc press release
24 October 2012

Krones improves operating earnings

Despite the adverse macroeconomic environment, Krones, the world's market
leader in beverage filling and packaging technology, continued to grow in
the third quarter of 2012.
From July to September, our sales improved 9.2% year-on-year to EUR 607.9
million. In the first nine months of 2012, sales revenue increased 4.6%
year-on-year to EUR 1,897.6 million.
New orders at Krones also picked up in the third quarter. At EUR 639.5
million, the new orders volume exceeded the year-earlier period by 12.3%.
In all, new orders were up 3.9% year-on-year to EUR 1,967.3 million in the
first nine months of 2012. At 30 September 2012, orders on hand totalled
EUR 1,012.1 million (previous year: EUR 987.3 million).

Krones' earnings before taxes (EBT) for the third quarter of 2012 came to
-EUR 13.6 million (previous year: positive EBT of EUR 14.9 million). The
reason for the negative result is that the company increased its provision
for legal disputes in the US, which resulted in a one-time expense of
around EUR40.6 million. Operating earnings before taxes, that is earnings
before taxes without accounting for the one-time expense, were up
year-on-year in the third quarter, from EUR 14.9 million to EUR 27.0
million.
Thus, operating earnings before taxes in the first three quarters of 2012
were improved from EUR 84.1 million to EUR91.0 million. Taking into account
the one-time expense, EBT declined in the first nine months of 2012, from
EUR84.1 in the year-earlier period to EUR 50.4million. Consolidated net
income for the first three quarters was EUR 36.2 million (year-earlier
period: EUR 59.3 million). That corresponds to earnings per share of 
EUR 1.20(previous year: EUR 1.97).

Outlook

In the first three quarters, Krones laid a good foundation for achieving
its growth target. The company expects sales to increase by as much as 4%
year-on-year in 2012. Because the increase in the provision for the legal
disputes in the USA is a one-time expense burdening earnings for 2012, the
company will not achieve its target for absolute earnings. The ratio of
earnings before taxes to sales will exceed 3.5%. However, Krones is
standing by its target for operating earnings, that is without taking into
account the one-time expense. The company expects the pre-tax operating
return on sales (the ratio of operating earnings before taxes to sales) to
exceed 5% for the year 2012 as a whole.

According to forecasts by the International Monetary Fund, the global
economy is not likely to improve significantly next year. The sovereign
debt crisis remains a major source of uncertainty and it can escalate
further at any time. Nevertheless, Krones is looking to the future with
reserved optimism.

The company's products and services address basic human needs for food and
drink and its customer sectors are stable. The measures taken under the
'Value' programme are expected to have an increasingly positive impact on
earnings. Nevertheless, the company must step up its efforts to achieve
sales growth between 4% and 6% in 2013 and to further improve its pre-tax
return on sales.

Your contact person:
Olaf Scholz
Head of Investor Relations Krones AG
Tel.: +49 9401 70-1169 
Mobile: +49 151 12248730
Email: olaf.scholz@krones.com


24.10.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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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:       investor-relations@krones.com
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 Announcement                             DGAP News-Service
 
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