Press and News
Corporate News Release – Krones has got 2016 off to a good start
- Revenue grew 4.5% to €772.1 million in the first quarter.
- New orders also increased 4.5%.
- Krones improved earnings. The EBT margin widened from 6.8% to 7.1%.
- Executive Board confirms targets for 2016. Krones expects 3% revenue growth and an EBT margin of 7.0%.
Krones, the world’s leading manufacturer of filling and packaging technology, continued its stable growth trend in the first quarter of 2016 after a strong year in 2015. As a full-service supplier with a broad range of products and services, Krones was able to hold its own in highly competitive markets. In the period from January to March 2016, revenue increased 4.5% year-on-year from €738.9 million to €772.1 million. New orders also rose 4.5%, from €787.0 million in the year-earlier period to €822.2 million. The biggest increase in new orders came in Europe and North America. Demand was stable in China. At 31 March 2016, orders on hand at Krones totalled €1,144.7 million, which is 4.6% higher than at the end of 2015.
Krones’ earnings increased further. In the period from January to March 2016, earnings before taxes (EBT) once again rose more than revenue, 9.8% from €50.2 million in the previous year to €55.1 million. The EBT margin, the ratio of earnings before taxes to revenue, rose from 6.8% to 7.1%. Krones benefited primarily from cost savings achieved as part of the Value strategy programme. Market prices did not improve in the reporting period.
Consolidated net income increased 9.7% in the first quarter of 2016 to €38.4 million. That corresponds to earnings per share of €1.23 (previous year: €1.11). The return on capital employed (ROCE), that is the ratio of earnings before interest and taxes to average net tied-up capital, improved to 16.7% in the reporting period (previous year: 16.5%).
Good start to the year affirms outlook for 2016 as a whole
Based on the current macroeconomic prospects and developments on the markets relevant to Krones, the company expects consolidated revenue to grow by 3% in 2016.
Krones’ earnings are set to improve yet again this year. The Executive Board is forecasting an EBT margin of 7.0% for 2016. Krones aims to increase its third strategy target, ROCE, to 18% this year.
Krones published the complete Quarterly Statement for the first quarter of 2016 online today at http://www.krones.com/en/investor_relations/reports.php.back