Report for the third quarter 2007

Dear shareholders and friends of Krones,

Sentiment in Germany’s machinery sector has seldom been as high as it is now. Worldwide, demand for products from Germany’s outstanding machinery industry has been extremely brisk and most companies are generating tidy profits. As usual, Krones is out in front. Sales and earnings in the first nine months of 2007 outperformed the year-earlier period considerably. Sales revenues rose 17.1% to €1,569.7m and after-tax earnings were up 37.4% to €105.0m.

We are especially pleased with the large increase in new orders in the third quarter, which was due in part to the strong economy and in part to various measures we have introduced in recent years to improve operations and efficiency.We also benefited from our position as the only full-service supplier worldwide capable of offering our customers cutting-edge machinery and lines that enable them to optimise their production processes.

On the whole, Krones is in a better position today than ever before in the company’s history. But that doesn’t mean we’re resting on our laurels. The global markets continue to present challenges for Krones ag. And we’re doing everything in our power to stay at least one step ahead of the competition. Krones intends to continue to generate strong profits, even when the economy isn’t as strong as it is now.

 

Volker Kronseder
Chairman of the Executive Board

Hans-Jürgen Thaus
Deputy Chairman of the Executive Board