DGAP-News: Krones AG: Following nine record years, global crisis puts Krones in the red
(firmenpresse) - Krones AG / Preliminary Results
15.03.2010 07:03
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Neutraubling, Germany, 15 March 2010 - The year 2009 was dominated by the
global economic crisis. As a consequence, the 2009 business year was for
Krones AG, the world's market leader for beverage filling and packaging
technology, probably the most difficult in the company's 59 years of
existence. Demand in the packaging machinery market fell worldwide by more
than 25 %. With the exception of China, all regions were affected by a
significant decline, particularly North and South America, and Eastern
Europe and Russia.
Order bookings at the Krones Group fell in 2009 compared to the previous
year by 18 %, to 1,916 million euros (preceding year: 2,326 million euros).
Not until the fourth quarter of 2009 was there any discernible turnaround
in the ordering patterns of Krones' clients, with a plus of 10 % compared
with the already weakened fourth quarter of 2008. This meant the order
backlog on 31 December 2009 totalled 888 million euros (preceding year: 837
million euros).
As a consequence of weaker order bookings, consolidated sales in 2009 fell
by 22 % compared with the record year of 2008, to total 1,865 million euros
(preceding year: 2,381 million euros). On the basis of the order bookings,
Krones does not anticipate any reversal of the trend in terms of sales
until the first half of 2010.
Profitability in the Krones Group was crucially affected by the
consequences of the economic crisis, due to the sheer rapidity of the trend
reversals concerned. Although the Executive Board had already launched the
'Conversion' programme at the end of 2008, designed to revamp the entire
company to cope with the shrinking markets, Krones in 2009 achieved a
consolidated result of minus 34.5 million euros (preceding year: plus 106.5
million euros).
Krones' rock-solid financial position has proved its worth, constituting a
crucial safety factor in the global crisis. Despite the loss recorded in
the 2009 business year, the company upped its free cash flow by 5 % to 83
million euros.
On the reporting date of 31 December 2009, the Krones Group had no debts
with banks, and in addition possessed liquid funds (net cash) amounting to
more than 135 million euros (preceding year: 107 million euros).
Cautious optimism for 2010
Future developments in the global economy overall are anybody's guess, with
prognoses ranging from optimistic to critical. Due to the multilayered
global interdependencies involved, there are no verified trends or
prognoses pointing unequivocally to what is going to happen.
The long-term growth prospects for Krones continue to be good, since the
mega-trends are auspicious for the company's chosen sector. Global
population continues to increase, affluence in many countries is rising,
with concomitantly expanding consumption. Eating and drinking are numbered
among all people's basic needs. These requirements, plus the imperative for
Krones' clients to ensure increasingly distinctive differentiation at the
point of sale in the industrialised nations, are generating an exploding
multiplicity of new containers and packaging forms, leading to dynamically
increasing complexity in the value creation chain. This hasto be mastered.
Krones covers this need comprehensively with its portfolio of products and
service.
Krones has learned lessons from the crisis, will be mobilising further
identified potentials with its 'Conversion' change management programme,
which stands for 'rethink and revamp' and is readying itself to cope with
more volatile markets.
In view of developments over recent months, Krones is cautiously optimistic
for 2010. The company anticipates a turnaround in the overall trend for the
first half of 2010, with a concomitant increase in sales during the 2010
business year of 5 % to 15 %, plus a return to significant positive
results.
All figures are provisional, and are subject to auditing and approval of
the financial statements by the supervisory board. The complete annual
financial statements will be published on 27 April 2010 and presented on
this date at the balance sheet press conference.
Your contact person:
Olaf Scholz
Head of Investor Relations Krones AG
Tel.: +49 9401 70-1169
Email: olaf.scholz(at)krones.com
15.03.2010 07:03 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Krones AG
Böhmerwaldstraße 5
93073 Neutraubling
Deutschland
Phone: +49 (0)9401 703258
Fax: +49 (0)9401 703786
E-mail: investor-relations(at)krones.com
Internet: www.krones.com
ISIN: DE0006335003
WKN: 633500
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart
End of News DGAP News-Service
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