Krones ups its profitability and expands new business

With its business figures for the months of July, August and September, and in the total for the year’s first three quarters, Krones has improved on the preceding year’s equivalent results. The specialist manufacturer for machines and complete lines in the bottling, canning and packaging sectors, headquartered in Neutraubling near Regensburg, Germany, again reports buoyant business, a success increasingly manifest on the domestic market as well.

Sales rose by 11.0 % to reach 1,340.4 million euros during the year’s first nine months, a notable achievement in view of the continuing price war encountered. The sustainedly healthy level of demand produced a new record of 516.5 million euros in order bookings during the year’s third quarter, a rise reflecting Krones’ achievement in further expanding its market status despite continuingly fierce pressure of competition.

As a result of enhanced productivity levels in the ongoing year, efficacious cost-cutting programmes and comprehensive process optimisation initiatives, moreover, Krones has further upgraded its profitability. Earnings after taxes in the year’s first three quarters came to 48.5 million euros, up by 7.1 % on the preceding year’s equivalent period. Earnings before taxes, at 76.4 million euros for the nine-month period, represent an increase of 14.5 % on a like-for-like basis.

Earnings have of course been adversely affected by external factors, such as continuing predatory competition and rising costs for materials, but for 2006 as a whole, the figures for the past nine months augur an approximately double-figure growth in sales.
Krones also anticipates an improved return on sales. For 2007, Krones will be focusing on further growth in earnings, ahead of increased sales.