DGAP-Adhoc: Krones AG: Significant rise in Krones' profitability during 2011's first quarter

Krones AG  / Key word(s): Quarter Results

27.04.2011 09:24

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Neutraubling, 27 April 2011 - Demand for Krones' products and services has
steadily increased since the beginning of 2011. The world's market leader
for beverage filling and packaging technology has benefited not only from
the good macro-economic situation, but also from its strong position on
fast-growing markets like China and South America.
The company's order bookings, at 628.6 million euros, increased by 14.2 %
in the year's first quarter on a like-for-like comparison. Sales, at 606.7
million euros, were 13.7 % up on the preceding year's equivalent quarter.
Krones' profitability showed a significant improvement. Thanks to the
healthy order situation, the firm's production capacities were being very
well utilised in the year's first quarter.
Earnings before taxes rose during January to March 2011, the period under
review, from 13.2 million euros in the preceding year to 35.2 million
euros. The EBT margin, the ratio between earnings before taxes and sales
revenues, was 5.8 % (preceding year: 2.5 %). After taxes, Krones earned
consolidated profits of 24.8 million euros (preceding year: 9.1 million
euros). Earnings per share improved from 0.30 to 0.82 euros.

Outlook
Krones is benefiting from the currently auspicious development of the
global economy. However, the times of linear growth planning are history.
Present-day markets are characterised by volatility, trend reversals and
uncertainty.
With the result for the year's first quarter, Krones has created a solid
foundation for achieving its targets for 2011 as a whole. From today's
perspective, Krones is confident of generating growth of 7 to 10 % in
consolidated sales, and exceeding a pretax return on sales of 5 % (year
2010: 3.3 %). In the year's first quarter, Krones has already succeeded in
this, with an EBT margin of 5.8 %.
Beyond the year of 2011 as well, Krones aims to proactively and
purposefully shape its corporate future. The target and aspiration is that
the pretax return in 2012 - provided the global economy continues to
progress auspiciously - will thanks to improved profit margins in all
segments once again return to a sustainable 7 %. In terms of sales, too,
Krones anticipates further growth for all segments.


27.04.2011 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
              Deutschland
Phone:        +49 (0)9401 703258
Fax:          +49 (0)9401 703786
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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