Krones with further-improved business figures in 2005 as well

In the past business year 2005, too, the plant and machinery manufacturer Krones AG, Neutraubling, Germany, continued its series of improved results in terms of sales, order bookings and profits.

The world’s market leader in the field of beverage filling lines and packaging machinery upped its sales by 11.9 % over the previous year to reach 1.695 bn euros, a figure boosted particularly by a strong last quarter to the year.
In particular, the rising demand for water bottling lines, plus the continuing trend towards beverage packages made of PET, both of them numbered among Krones’ specialities, have contributed to this exceptional surge in sales.

Krones also achieved vigorous growth in its order bookings, up by 11.7 % at 1.735 bn euros compared with the preceding year, thanks not least to orders totalling 120 m euros that Krones won during the beverage industry’s drinktec 2005 trade fair. The company’s profits after tax come to 63.4 m euros, a 2.2 % increase in net income for the year. Profit margins in 2005 were severely hit by the struggle for market share in a fiercely competitive price-driven business environment.

Krones’ export quota rose in 2005 to 87 %, following 82 % in 2004. Almost 55 % of orders came from outside Europe, 32 % from Europe itself, and a mere 13 % from Germany, compared to 18 % in the preceding year, a drop reflecting the declining level of capital investment in the firm’s domestic market.

For 2006, Krones expects sales to rise still further, boosted not least by contributions from new lines of business. With increased investment totalling 69 m euros, Krones aims to upgrade its facilities in Germany, to increase its productivity by purposeful optimisation of all business processes, and on these foundations to improve its earnings still further.