15.03.2018
Krones AG DE0006335003
DGAP-News: Krones AG: Krones plans to pay out a dividend of EUR1.70 per share for 2017
DGAP-News: Krones AG / Key word(s): Final Results/Dividend
Krones AG: Krones plans to pay out a dividend of EUR1.70 per share for 2017
15.03.2018 / 08:00
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
15 March 2018
Krones plans to pay out a dividend of EUR1.70 per share for 2017
- Krones publishes 2017 annual report and confirms preliminary figures
- The company intends to increase dividend from EUR1.55 to EUR1.70 per share
- Executive Board forecasts continued revenue and earnings growth in 2018
Krones, the world's leading manufacturer of filling and packaging
technology, released its annual report for the financial year 2017 today.
The company continued its stable, profitable growth and intends to give
shareholders an appropriate share in its success.
Krones' revenue grew 8.8%
Krones' revenue increased 8.8% year-on-year to EUR3,691.4 million. Adjusted
for acquisitions, revenue was up 7.2%. Krones' broad international
diversification and comprehensive portfolio of products and services served
the company well in 2017. The highest percentage revenue growth came in the
South America/Mexico, Asia-Pacific, and Western Europe sales regions. Order
intake improved by 10.0% year-on-year to EUR3,786.8 million in 2017.
Adjusted for acquisitions, the increase was 7.1%. While order intake in the
Asia-Pacific and North America regions rose more than that, ordering
activity was somewhat slower in China and the Middle East/Africa. At the end
of 2017, Krones had orders on hand totalling EUR1,240.1 million, which is up
8.3% year-on-year. The comfortable orders backlog provides a good basis for
continued revenue growth.
The EBT margin was stable at 7.0%.
As forecast, Krones further increased earnings before taxes (EBT) in 2017.
It should be borne in mind that the expense for the drinktec trade fair
resulted in a charge against EBT in the mid-single-digit millions of euros.
Nevertheless, EBT improved 8.9% over 2016 to EUR258.8 million. The EBT
margin remained stable at 7.0%, as in the year-earlier period. Thus, Krones
met its EBT margin target for 2017. As expected, market prices provided no
support. Krones was able to offset increased costs with increased
efficiency. Expanding our global footprint and general cost-cutting measures
helped here. Net income increased 10.7% year-on-year in 2017 to EUR187.1
million. Earnings per share rose from EUR5.40 in the previous year to
EUR5.97. Earnings before taxes (EBT) developed best in the machines and
lines for product filling and decoration segment in 2017. The company's core
segment increased EBT 11.9% year-on-year to EUR257.0 million. The EBT margin
improved from 8.2% to 8.7%, more than the 8% forecast. By contrast, earnings
in the machines and lines for beverage production/process technology segment
fell short of expectations. After totalling EUR1.5 million in the previous
year, EBT slipped into the red, to -EUR4.5 million in 2017. Krones is
confident that the segment will be profitable again in 2018 as it expands
its global footprint and fully integrates the acquisitions. Profitability in
the company's smallest segment, machines and lines for the compact class,
was within the forecast range. EBT declined slightly, from EUR6.4 million to
EUR6.3 million. The EBT margin was 5.1% (previous year: 5.2%). As of 2018,
Krones' compact class offerings are now part of the core segment, machines
and lines for product filling and decoration. Thus, the company will report
on only two segments going forward.
Shareholders to receive a dividend of EUR1.70 per share for 2017
Krones wishes to give its shareholders an appropriate share in the company's
success in 2017. 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 13 June 2018
that a dividend of EUR1.70 per share be paid out for the 2017 financial year
(previous year: EUR1.55). That is an increase of 9.7%. The planned payout
for 2017 corresponds to 28.7% of consolidated net income.
Krones still has a very robust financial and capital structure
The ratio of average working capital for the past four quarters to revenue
was up from 26.7% in the previous year to 27.3% in 2017. The target for 2017
was 27%. The company is not satisfied with the development of free cash
flow, which decreased to -EUR150.7 million in 2017 (2016: +EUR49 million).
Net cash and cash equivalents (cash and cash equivalents less liabilities to
banks) decreased to EUR157.4 million (previous year: EUR369 million). The
company's equity ratio improved to 43.8% (previous year: 39.9%). Overall,
Krones continues to possess a very robust financial and capital structure.
With the figures noted above, Krones confirms the preliminary figures
released on 22 February 2018. 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 6%
in 2018. Profitability is expected to remain stable despite investment in
digitalisation and start-up costs associated with expanding the company's
global footprint, in particular for the new site in Hungary. Krones expects
the reported EBT margin to be 7.0% in 2018. The company's third financial
performance target, working capital to revenue, is expected to improve to
26%.
Krones has published the complete Annual Report 2017 online at
https://www.krones.com/en/company/investor-relations/reports.php
Figures for 2017 2017 2016 Chang-
e
Revenue EUR 3,691.4 3,391.3 +8.8%
mil-
lio-
n
Order intake EUR 3,786.8 3,441.3 +10.0-
mil- %
lio-
n
Orders on hand at 31 December EUR 1,240.1 1,144.7 +8.3%
mil-
lio-
n
EBITDA EUR 340.2 320.8 +6.0%
mil-
lio-
n
EBIT EUR 245.5 228.0 +7.7%
mil-
lio-
n
EBT EUR 258.8 237.6 +8.9%
mil-
lio-
n
EBT margin % 7.0 7.0 ±0.0
PP*
Consolidated net income EUR 187.1 169.1 +10.7-
mil- %
lio-
n
Earnings per share EUR 5.97 5.40 +10.6-
%
Dividend per share EUR 1.70** 1.55 +9.7%
Capital expenditure for PP&E and EUR 133.5 111.3 +EUR2-
intangible assets mil- 2.2
lio- milli-
n on
Free cash flow EUR -150.7 49.2 -EUR1-
mil- 99.9
lio- milli-
n on
Net cash and cash equivalents*** at 31 EUR 157.4 368.9 -EUR2-
December mil- 11.5
lio- milli-
n on
Working capital to revenue **** % 27.3 26.7 +0.6
PP*
ROCE % 16.6 17.0 -0.4
PP*
Employees at 31 December
Worldwide 15,299 14,443 +856
Germany 10,366 10,061 +305
Outside Germany 4,933 4,382 +551
*Percentage Points **As per proposal for
the appropriation of retained earnings
***Cash and cash equivalents less debt
****Average of last 4 quarters
Contact:
Olaf Scholz
Head of Investor Relations, Krones AG
Phone: +49 9401 70-1169
E-mail: [email protected]
---------------------------------------------------------------------------
15.03.2018 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.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
---------------------------------------------------------------------------
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
---------------------------------------------------------------------------
664283 15.03.2018
|
Weitere Ad-hoc und Unternehmensrelevante Mitteilungen zu
Krones AG ISIN: DE0006335003 können Sie bei EQS abrufen
Maschinen-/Anlagenbau , 633500 , KRN , XETR:KRN