23.03.2017
Krones AG DE0006335003
DGAP-News: Krones AG: Krones intends to pay out a dividend of EUR1.55 per share
DGAP-News: Krones AG / Key word(s): Final Results
Krones AG: Krones intends to pay out a dividend of EUR1.55 per share
23.03.2017 / 07:30
The issuer is solely responsible for the content of this announcement.
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Corporate news release
23 March 2017
Krones intends to pay out a dividend of EUR1.55 per share
for 2016
- Krones publishes 2016 annual report and confirms preliminary figures
- Dividend to increase by EUR0.10 per share year-on-year to EUR1.55 per
share
- Executive Board expects continued revenue and earnings growth in 2017
Krones, the world's leading manufacturer of filling and packaging
technology, released its 2016 annual report today. The company continued its
stable, profitable growth and intends to give shareholders an appropriate
share in its success.
Krones' revenue increased 6.9% year-on-year from EUR3,173.5 million to
EUR3,391.3 million in 2016. Adjusted for the acquisitions, revenue growth
came to 4.2%. With that, Krones has slightly exceeded its growth target of
3% for the year 2016. Our comprehensive range of products and services and
our strong international presence continue to support the company's growth.
For example, revenue in the Middle East and Africa, which together make up
an important growth region for Krones, and in North and Central America grew
more than overall revenue.
Order intake increased 7.9% year-on-year to EUR3,441.3 million in 2016. The
increase is partly due to acquisitions. Adjusted for acquisitions, order
intake increased 5.2%. The biggest percentage increase in orders was in
North America and in the Eastern Europe/CIS sales region. At 31 December
2016, the company had orders on hand totalling EUR1.14 billion, which is up
4.6% on the previous year (EUR1.09 billion).
Krones performed well in highly competitive markets
Krones increased earnings again in 2016 despite the highly competitive
markets. Earnings before taxes (EBT) rose 6.4% year-on-year, from EUR223.3
million in 2015 to EUR237.6 million. The EBT margin remained unchanged
year-on-year at 7.0%. Thus, Krones met its EBT margin target for 2016.
Market prices provided no support, as expected. Net income improved 8.2%,
from EUR156.3 million in the previous year to EUR169.1 million in 2016.
Earnings per share rose to EUR5.40 (previous year: EUR4.98).
All three of the company's segments grew profitably in 2016. The core
segment, machines and lines for product filling and decoration, generated
EUR229.6 million in earnings before taxes in 2016 (previous year: EUR220.5
million).
The EBT margin rose slightly, from 8.1% a year earlier to 8.2% in 2016.
Earnings before taxes in the beverage production/process technology segment
improved from -EUR2.1 million in the previous year to +EUR1.5 million. At
0.3%, the EBT margin was slightly below the forecast of around 1%. Earnings
before taxes in the smallest segment, machines and lines for the compact
class, increased from EUR4.9 million in the previous year to EUR6.4 million
in 2016 and the EBT margin came to 5.2% (previous year: 4.5%).
Shareholders to receive a dividend of EUR1.55 per share for 2016
Krones wishes to give its shareholders an appropriate share in the company's
success in 2016. As a matter of policy, Krones pays out 25% to 30% of
consolidated net income to shareholders. The Executive Board and the
Supervisory Board will propose to the annual general meeting on 20 June 2017
that a dividend of EUR1.55 per share be paid out for the 2016 financial
year. That is a year-on-year increase of EUR0.10 per share. The planned
payout for 2016 corresponds to 29.0% of consolidated net income and lies
near the upper end of the target corridor.
Krones has a very robust financial and capital structure
Krones' return on capital employed (ROCE), the ratio of EBIT to average net
capital employed, came to 17.0% in 2016 (previous year: 17.7%). With that,
Krones did not achieve its ROCE target of 18% for 2016 because the increase
in capital employed was higher than the increase in EBIT. The relatively
high positive cash flow from operating activities in the fourth quarter of
2016 resulted in free cash flow of EUR49.2 million for the year as a whole
(previous year: EUR70.7 million).
At the end of 2016, Krones held cash and cash equivalents totalling EUR368.9
million (previous year: EUR364.6 million) and had no bank debt. The
company's equity ratio was 39.9% on 31 December 2016 (previous year: 41.0%).
Overall, Krones continues to possess a very robust financial and capital
structure.
With the figures noted above, Krones confirms the preliminary figures
released on 2 March 2017. The financial audit did not give rise to any
material changes.
Outlook
Based on the current macroeconomic prospects and developments in the markets
relevant to Krones, the company expects consolidated revenue to grow by 4%
in 2017. The company expects earnings to rise further and the EBT margin to
remain stable at 7.0% this year. The forecast for the company's new
financial performance target, working capital to sales, is 27% for 2017.
This indicator replaces ROCE as one of our key targets. Possible
acquisitions are not included in these forecasts for 2017.
Krones has published the complete Annual Report 2016 online at
http://www.krones.com/en/investor_relations/reports.php.
Key figures for 2016
Key Figures for 2016 2016 2015 Change
Revenue EUR 3,391.3 3,173.5 +6.9%
milli-
on
Order intake EUR 3,441.3 3,189.0 +7.9%
milli-
on
Orders on hand at 31 December EUR 1,144.7 1,094.6 +4.6%
milli-
on
EBITDA EUR 320.8 305.3 +5.1%
milli-
on
EBIT EUR 228.0 216.9 +5.1%
milli-
on
EBT EUR 237.6 223.3 +6.4%
milli-
on
EBT margin % 7.0 7.0 -
Consolidated net income EUR 169.1 156.3 +8.2%
milli-
on
Earnings per share EUR 5.40 4.98 +8.4%
Dividend per share EUR 1.55* 1.45 +6.9%
Capital expenditure for PP&E and EUR 111.3 102.6 +EUR8.7
intangible assets milli- million
on
Free cash flow EUR 49.2 70.7 -EUR21.-
milli- 5
on million
Net cash and equivalents** at 31 EUR 368.9 364.6 +EUR4.3
December milli- million
on
ROCE % 17.0 17.7 -70
base
points
Employees at 31 December
Worldwide 14,443 13,346 +1,097
Germany 10,061 9,767 +294
Outside Germany 4,382 3,579 +803
* As per proposal for the
appropriation of retained earnings **
Cash and cash equivalents less debt
Contact:
Olaf Scholz
Head of Investor Relations, Krones AG
Phone: +49 9401 70-1169
E-mail: [email protected]
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23.03.2017 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Krones AG
Böhmerwaldstraße 5
93073 Neutraubling
Germany
Phone: +49 (0)9401 701169
Fax: +49 (0)9401 709 1 1169
E-mail: [email protected]
Internet: www.krones.com
ISIN: DE0006335003
WKN: 633500
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Munich;
Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Hanover, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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