Report for the first quarter 2007

Dear shareholders and friends of Krones,

Krones has got 2007 off to a good start. A strong economic cycle and internal improvements we introduced last year have helped us do well in the first quarter. We have streamlined our production processes and increased productivity. In addition, price pressures have subsided. We will continue to steadily improve our internal processes so that we can continue to achieve strong results like those of the first three months of 2007.

At €505m, sales are up a solid 11.8% year-on-year. Earnings before taxes increased 18.4% to €36.1m. Thus, our pre-tax return on sales was 7.1%, slightly above our margin target of 7%.

A strong inflow of orders, which was up 14% year-on-year in the first quarter to €557.1m, and a comfortable orders backlog give us confidence that we will achieve new sales and earnings records for the eighth year in succession.

 

Volker Kronseder
Chairman of the Executive Board

Hans-Jürgen Thaus
Deputy Chairman of the Executive Board