Krones expects to break even in the fourth quarter this year

In the first nine months of 2009, order bookings dropped 24.4 percent to EUR 1.4 billion from EUR 1.9 billion a year ago. Order bookings from eastern Europe, the CIS countries and from North America remained well below the preceding year’s figures.

However, many markets seem to be picking up again. In the third quarter of 2009, order bookings, at EUR 540.4 million, were only 13.9 percent below the preceding year’s level. Compared to the second quarter 2009, order bookings rose 17.6 percent in the July-to-September period.

On 30 September 2009, the company’s order backlog, at EUR 887.8 million, was 10.9 percent below last year’s level.

Since the decline in both volume and price was substantial in the first six months of this year, the cost savings achieved by the “Conversion” programme were not sufficient to prevent Krones from slipping into the red. In the first nine months of this year Krones recorded a pre-tax loss of EUR 26.9 million.

Despite the loss suffered in the year’s first nine months, Krones registered a free cash flow of EUR 26.8 million. On 30 September 2009, the equity ratio, at 40.9 percent, was well above the sectoral average.

Krones is targeting a break-even result for the fourth quarter of 2009.

For the full year 2009, Krones is expecting sales to fall 20 percent to 25 percent.

Still, Krones’ Executive Board is confident that in 2010 sales will grow and pre-tax earnings will be written in black again.