Corporate | 19 March 2015 07:15
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Krones AG / Key word(s): Final Results
Corporate News Release
Krones reached its targets for 2014 and is optimistic for 2015 – Revenue rose 4.9% in 2014 to EUR2.95 billion. – Profitability, measured as the EBT margin, improved from 6.0% to 6.5%. – Dividend for 2014 to increase over previous year’s regular dividend, from EUR1.00 to EUR1.25 per share. – For 2015, Krones is expecting revenue growth of 4% and an EBT margin of 6.8%. In the 2014 financial year, Krones, the world’s leading manufacturer of filling and packaging technology, met its forecasts for key financial performance indicators. With revenue up by 4.9% to EUR2.95 billion, the company exceeded its revenue target of + 4%. KRONES profited from its broadly diversified portfolio of products and services and its international operative capabilities. The company benefited from its strong competitive position in the newly industrialising countries. The share of revenue that Krones earns in the emerging markets rose in 2014 from 58.2% in the preceding year to 60.4%. New orders grew more steeply than revenue in 2014, rising by 8.2% to reach EUR3.04 billion (previous year: EUR2.81 billion). At 31 December 2014, Krones had orders on hand totalling EUR1.08 billion (previous year: EUR992.4 million). Profitability again improved Despite continued price pressures, Krones significantly improved its profitability in 2014. Key here were the measures taken under the Value strategy programme, which have upgraded corporate efficiency. Earnings before taxes (EBT) in 2014 climbed by 13.1% year-on-year, from EUR169.7 million to EUR191.8 million. Krones improved its EBT margin – the ratio of earnings before taxes to revenue – from 6.0% in the previous year to 6.5%. With that, the company exceeded the forecast figure of “around 6.2%”. Net income improved 13.6% year-on-year in the reporting period to EUR135.7 million. That corresponds to earnings per share of EUR4.30 (previous year: EUR3.84). With revenue of EUR2,492.7 million, the EBT margin in the company’s core segment advanced by a very satisfying 7.8%. The two smaller segments’ operating figures were in the black for the year 2014 as a whole. Process Technology, with revenue of EUR358.7 million, achieved an EBT margin of 1.0%. In the Kosme segment, a restructuring provision meant that the EBT margin was negative, at -4.6%, despite a break-even operating result and revenues of EUR102.0 million. The segment thus performed in line with expectations. Cash and cash equivalents are up thanks to improved cash flow In 2014, Krones achieved a return on capital employed (ROCE), that is the ratio of earnings before interest and taxes (EBIT) to average net tied-up capital, of 16.4% (previous year: 16.7%). With that, the company has achieved its ROCE target of “>16.0%”. Free cash flow rose significantly, from EUR67.0 million to EUR152.1 million. Overall, cash and cash equivalents increased by EUR96.6 million on the previous year to EUR336.4 million. The equity ratio was running at 40.7% on 31 December 2014 (previous year: 42.6%). Krones thus continues to possess an exceptionally sound financial and capital structure. All figures stated here are provisional and may change following completion of the audit. Krones to pay a dividend of EUR1.25 per share
The Executive Board and Supervisory Board will propose to the annual shareholders’ meeting a dividend of EUR1.25 per share for the 2014 financial year. The planned payout corresponds to 29% of consolidated net income and lies near the upper limit of the corridor targeted (25 to 30%).
Outlook Based on the current macroeconomic prospects and developments on the markets relevant to Krones, the company expects consolidated revenue to grow by 4% in 2015. The company’s profitability is set to improve yet again this year. Krones expects the EBT margin to rise to 6.8%. That puts Krones very close to the medium-term target of 7%, which the company had set itself when launching its Value programme. The company is aiming to increase its third strategy target, ROCE, to around 17% this year. Krones will publish its annual report for 2014 and its report on the first quarter of 2015 on 30 April 2015.
Key figures for 2014
Revenue EUR m 2,953.4 2,815.7 + 4.9 %
EBITDA EUR m 276.3 257.6 + 7.3 %
Capital expenditure for PP&E and
Employees at 31 December
* as per proposal for the appropriation of retained earnings ** including a EUR1.00 “special payout” *** cash and cash equivalents less debt
Contact:
2015-03-19 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
| Language: | English | |
| Company: | Krones AG | |
| Böhmerwaldstraße 5 | ||
| 93073 Neutraubling | ||
| Germany | ||
| Phone: | +49 (0)9401 701169 | |
| Fax: | +49 (0)9401 709 1 1169 | |
| E-mail: | investor-relations@krones.com | |
| Internet: | www.krones.com | |
| ISIN: | DE0006335003 | |
| WKN: | 633500 | |
| Indices: | MDAX | |
| Listed: | Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart | |
| End of News | DGAP News-Service |
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