It’s the crisis, stupid!

This proves how fast things can change. For nine consecutive years, Krones managed to increase sales and profits. But in the span of a few months Krones may go from record growth to loss.

Like all wise managers, Krones’ board refused to give a precise outlook for 2009, which annoyed analysts no end.

That’s tough. Now analysts have to think real hard as to where to invest their money.

Krones has already introduced measures to beat the crisis. It has had to part company with about 800 temporary workers and discontinue sub-contracting. Its controllers were told to look hard at raw materials costs, travel expenses and trade fair participation costs.

The jury is still out on whether the demand for food and beverage packaging machines will pick up quickly. Many of the big breweries hold back investments, while the smaller customers have problems finding adequate financing conditions.