Krones, a 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 €2,270.7 million to €2,380.1 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 €2,452.5 million in the first nine months of 2016. At €1,167.0 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 €163.6 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 €114.3 million, a bit more than EBT. Earnings per share advanced from €3.45 in the previous year to €3.65 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%.
