Krones continues to grow

Krones improved all key financial performance indicators over the previous year in the first half of 2014. Revenue rose 4.2 percent year-on-year in the first half of 2014, from EUR 1377.5 million to EUR 1435.5 million. The emerging markets contributed an important part of this growth.

Demand for products and services from Neutraubling remained high in the period from January to June 2014. New orders increased 5.7 percent year-on-year to EUR 1461.9 million. Given the strong demand, the company’s orders backlog grew despite the increase in revenue.

EBT margin up to 6.2 percent

Although 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 program were key to this improvement. Earnings before taxes (EBT) rose 12.2 percent from EUR 79.7 million in the previous year to EUR 89.4 million. With that, the EBT margin – the ratio of earnings before taxes to revenue – improved from 5.8 percent in the previous year to 6.2 percent in 2014. The net income also increased 12.2 percent, to EUR 62.4 million.

Earnings per share advanced from EUR 1.81 in the previous year to EUR 1.98 in the reporting period. 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.

Overall, based on the development of the markets relevant to Krones and the continuing uncertain economic outlook, the company expects revenue to grow by four percent in 2014.