26.10.2016
Krones AG DE0006335003
DGAP-News: Krones AG: Krones confirms its targets for 2016
DGAP-News: Krones AG / Key word(s): Quarter Results
Krones AG: Krones confirms its targets for 2016
26.10.2016 / 07:15
The issuer is solely responsible for the content of this announcement.
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Corporate news release
26 October 2016
Krones confirms its targets for 2016
- Revenue increased 4.8% in the first three quarters of 2016 to EUR2.38
billion.
- New orders rose 6.1% to EUR2.45 billion.
- The EBT margin was stable at 6.9% after nine months.
- Krones confirms its revenue and earnings forecast for 2016 as a whole
and has set medium-term targets of 7/8/20 for 2020.
Krones, the world's leading manufacturer of filling and packaging
technology, continued its stable growth in the first three quarters of
2016. Despite economic uncertainties and intense competition, revenue
improved 4.8% year-on-year from EUR2,270.7 million to EUR2,380.1 million.
From a regional perspective, revenue developed best in China, the Middle
East/Africa, and Central and Eastern Europe in the first three quarters of
2016.
New orders at Krones rose 6.1% year-on-year to EUR2,452.5 million in the
first nine months of 2016. At EUR1,167.0 million, Krones' orders backlog at
30 September 2016 was up 4.2% on the previous year.
EBT margin stable at 6.9% after the first three quarters
Krones improved earnings before taxes (EBT) by 4.8% to EUR163.6 million in
the reporting period. Prices continued to provide no support. The increase
in earnings can be attributed to positive effects from the Value strategy
programme as well as additional short-term cost savings. At 6.9%, the EBT
margin was stable year-on-year in the first three quarters. Because the tax
rate was somewhat lower, consolidated net income improved 5.5% to EUR114.3
million, a bit more than EBT. Earnings per share advanced from EUR3.45 in
the previous year to EUR3.65 in the first nine months of 2016. The return
on capital employed (ROCE) declined to 15.5% (previous year: 17.0%).
Krones confirms its forecast for 2016 as a whole
Krones is confident that consolidated revenue growth of 3% and an EBT
margin of 7.0% for the year 2016 will be achieved as forecast despite the
many economic and political uncertainties. All three segments will
contribute by achieving their own growth and earnings targets. The company
continues to aim for an ROCE of 18%.
New medium-term target through 2020: 7/8/20
To keep moving the company forward for the long term, Krones has set a new
medium-term target of 7/8/20. By 2020, Krones intends to increase revenue
by 7% on average each year, improve the EBT margin to 8%, and bring ROCE
(return on capital employed) up to 20%. To grow by 7% each year, Krones
intends to pick up market shares in regions where beverage consumption is
growing faster than average. The rapidly growing diversity of products and
packaging is another growth driver. Acquisitions and the expansion of the
company's own product range will also contribute a large part to the
forecast growth.
Because no support can be expected from prices, even in the medium term,
Krones will have to work hard to achieve its EBT margin target of 8%.
Growing Krones' global footprint will be an important factor. To this end,
the company plans to shift a large part of procurement and engineering as
well as parts of production to the regions in which its customers operate
their plants. In addition, Krones will continue to advance the
modularisation of its machines and lines and expand its highly profitable
service business. To achieve the ROCE target of 20%, Krones will sharpen
its focus on working capital.
The concrete measures and programmes with which Krones intends to achieve
our targets can be found in the Q3 presentation, which is available on
Krones' website at http://www.krones.com/en/investor_relations/
presentation-2016.php.
Krones has published the complete quarterly statement for the third quarter
of 2016 online at http://www.krones.com/en/investor_relations/reports.php.
Contact:
Olaf Scholz
Head of Investor Relations, Krones AG
Phone: +49 9401 70-1169
E-mail: [email protected]
Key figures Q1 - 1 Jan - 30 1 Jan - 30 Change Q3 Sept 2016 Sept 2015 Revenue EUR million 2,380.1 2,270.7 +4.8% New orders EUR million 2,452.5 2,311.3 +6.1% Orders on hand at EUR million 1,167.0 1,119.7 +4.2% 30 September EBITDA EUR million 224.2 218.2 +2.7% EBIT EUR million 158.4 152.6 +3.8% EBT EUR million 163.6 156.1 +4.8% EBT margin % 6.9 6.9 - Consolidated net EUR million 114.3 108.3 +5.5% income Earnings per EUR 3.65 3.45 +5.8% share Capital EUR million 58.2 55.4 +EUR2.8 expenditure for million PP&E and intangible assets Free cash flow EUR million -197.0 -48.1 -EUR148.9 million Net cash and EUR million 121.8 253.7 -EUR131.9 equivalents at 30 million Sept* ROCE (liabilities % 15.5 17.0 - side) ROCE (assets % 14.0 14.9 - side) Employees at 30 September Worldwide 14,132 13,149 +983 Germany 9,959 9,655 +304 Outside Germany 4,173 3,494 +679* Cash and cash equivalents less debt Key figures Q3 1 July -30 1 July -30 Change Sept 2016 Sept 2015 Revenue EUR million 819.8 767.0 +6.9% New orders EUR million 850.1 787.2 +8.0% EBITDA EUR million 77.0 74.1 +3.9% EBIT EUR million 55.1 51.4 +7.2% EBT EUR million 56.3 52.0 +8.3% EBT margin % 6.9 6.8 - Consolidated net EUR million 39.9 35.6 +12.1% income Earnings per share EUR 1.27 1.13 +12.4%--------------------------------------------------------------------------- 26.10.2016 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 --------------------------------------------------------------------------- 514515 26.10.2016
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