DGAP-Adhoc: Krones AG: KRONES finishes 2009's first quarter with a loss

Krones AG / Quarter Results

27.04.2009 

Release of a Adhoc News, 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 2009 - Krones AG, the world's market leader for
beverage filling and packaging technology, suffered from the global
recession during the first quarter of 2009. Since clients in the food and
beverage industries have been reluctant to invest, sales in the first
quarter of 2009 fell by 19.0 % on a like-for-like basis, from 595.2 to
482.3 million euros. Order bookings, at 414.5 million euros, dropped by
31.7 % in the period January to March 2009. On 31 March 2009, Krones' order
backlog was 769.6 million euros (preceding year: 903.0 million euros).

Due to the sizeable fall in sales, Krones' earnings before taxes during the
quarter under review on a like-for-like comparison dropped from 45.6 to
minus 4 million euros. The high level of fixed costs, predominantly
personnel expenditure, hit earnings hard in the first quarter of 2009.
Since Krones is fully confident that in the long term the markets will
resume their growth trajectory, the company intends to retain its permanent
staff even in this business-hostile macro-economic environment. The
cost-cutting initiatives that the company embarked upon back in the fourth
quarter of 2008 will only take full effect as the year proceeds.

Outlook

The totally unprecedented macro-economic imponderabilities preclude any
meaningful prognoses for consolidated earnings in 2009. The company has to
proceed on the assumption that the worldwide financial and economic crisis
will over the course of 2009 significantly affect its sales and earnings.
In the event that clients' reluctance to invest persists for a lengthy
period to its present degree, with a resultantly sizeable fall in sales,
the possibility of a negative consolidated result for 2009 can no longer be
entirely ruled out. Krones expects the markets to recover in 2010.

Back in the 4th quarter of 2008, the Executive Board began an extensive
action programme, implemented throughout the group under the name
'Conversion', and designed to counteract the fall in earnings anticipated
due to the economic crisis. Krones intends to emerge from the recession
faster and in better shape than its competitors, and to further upgrade its
role as market leader. The group's exceptionally sound asset and financial
situation is a crucially reassuring factor against the backdrop of the
global crisis. The Executive Board is confident that once the economic
crisis has been overcome the company will very quickly be restored to its
familiar strength.



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



Contact:
Olaf Scholz
Leiter Investor Relations 
Tel.: +49 9401 70-1169
E-Mail: olaf.scholz@krones.com


DGAP 27.04.2009 
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Language:     English
Issuer:       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 News                                     DGAP News-Service
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