DGAP-News: Krones AG: Krones grew profitably in 2013

DGAP-News: Krones AG: Krones grew profitably in 2013

DGAP-News: Krones AG / Key word(s): Preliminary Results
Krones AG: Krones grew profitably in 2013

19.03.2014 / 07:30


Corporate news release
19 March 2014

Krones grew profitably in 2013

Krones, the world's market leader for beverage filling and packaging
technology, achieved its targets for key financial performance indicators
in 2013. Revenue rose 5.7% year-on-year, from EUR2,664.2 million to
EUR2,815.7 million, thus exceeding the company's growth target of +4%.
Krones benefited from its strong market position, broad range of products
and services, and an economic environment that was satisfactory overall.
The company's strong competitive position in the emerging markets had an
especially positive impact. New orders improved by 3.2% year-on-year to
EUR2,808.8 million in 2013. Orders on hand at Krones totalled EUR992.5
million at 31 December 2013 (previous year: EUR999.3 million).

Krones improved earnings performance in 2013 despite continued price
pressures. Measures taken to streamline cost structures under the "Value"
strategy programme had a positive impact. Earnings before taxes (EBT) rose
from EUR97.9 million in the previous year to EUR169.7 million. It should be
noted that the year-earlier figure was affected by a one-time expense of
EUR37.8 million (Le-Nature's settlement). Krones generated an EBT margin
(the ratio of EBT to revenue) of 6.0% in 2013. That puts the company at the
upper end of its target corridor of 5.8% to 6.0%. In 2012, the EBT margin
was 5.1% adjusted for the one-time expense relating to Le-Nature's.

While the EBT margin for the company's core segment developed very
favourably and reached 7.5%, the two smaller segments fell short of the
prediction that they would break even in 2013. In the process technology
segment, a write-down of approximately EUR5 million pushed earnings down to
-EUR2.5 million. At -EUR2.3 million, earnings at Kosme were also lower than
expected in 2013 after a weak fourth quarter.

After taxes, Krones earned consolidated net income of EUR119.4 million for
the reporting period (previous year: EUR67.0 million). That corresponds to
earnings per share of EUR3.84 (previous year: EUR2.22).

Cash and cash equivalents up considerably

Krones increased its return on capital employed (ROCE), that is the ratio
of EBIT to average net tied-up capital, to 16.7% (previous year, adjusted
for Le-Nature's: 13.6%). With that, the company exceeded its ROCE target of
15.0% for 2013. Free cash flow rose from EUR30.6 million to EUR67.0
million. The company's target had been to achieve a level of free cash flow
comparable to the previous year. The sale of the company's treasury shares
also had a positive impact on Krones' liquidity situation. Including the
EUR74 million in proceeds from the sale of treasury shares, Krones' cash
and cash equivalents increased from EUR107.0 million to EUR239.9 million
last year. The positive net income figure and the proceeds from the sale of
treasury stock brought the company's equity ratio up year-on-year from
38.5% to 42.6% in 2013.

All figures stated here are preliminary figures and may change as a result
of our auditors' findings.

Krones plans to pay out a total of EUR2.00 per share for 2013

Krones plans to pay a dividend of EUR1.00 per share for the financial year
2013 (previous year: EUR0.75). The considerably higher dividend reflects
the improved earnings as well as the company's new dividend policy to pay
out 25% to 30% of consolidated profit to shareholders. Moreover, Krones
wants to share the proceeds from the sale of treasury shares with
shareholders by paying out an additional EUR1.00 per share.


According to forecasts by leading economic research institutions, momentum
is likely to be somewhat stronger in 2014 than it was in 2013, both in the
industrialised countries and in the emerging economies.

From today's perspective, Krones expects consolidated revenue to grow by 4%
in 2014. Under the "Value" strategy programme, Krones aims to increase
efficiency along the entire value chain in 2014. Market prices are expected
to remain tight. Earnings should improve further in the company's core
segment, "machines and lines for product filling and decoration". In the
process technology segment, Krones expects earnings before taxes to be
positive. The company plans to break even in terms of operating earnings in
its smallest segment, "Kosme". Overall, Krones expects to achieve an EBT
margin of around 6.2% in 2014. For its third financial target, Krones
intends to achieve a ROCE of over 16%.

Krones will publish its 2013 Annual Report and its report on the first
quarter of 2014 on 30 April 2014.

Your contact person:
Olaf Scholz
Head of Investor Relations Krones AG
Phone: +49 9401 70-1169
E-mail: olaf.scholz@krones.com

End of Corporate News


19.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English                                                    
Company:     Krones AG                                                  
             Böhmerwaldstraße 5                                         
             93073 Neutraubling                                         
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 News    DGAP News-Service  
258233 19.03.2014                                                      
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