Krones, the world’s market leader in beverage filling and packaging technology, increased all key financial performance indicators over the previous year as planned in 2012. Consolidated revenue rose 7.4% from €2,480.3 million to €2,664.2 million. New orders improved 8.2% year-on-year from €2,514.0 million to €2,721.1 million in 2012.
At €97.9 million, earnings before taxes (EBT) were up 31.2% in 2012 over the previous year (€74.6 million). EBT was impacted by the one-time expense relating to settlement payments made in connection with Krones’ legal disputes in the US (Le-Nature’s). This resulted in a €37.8 million charge against EBT for 2012. The charge against earnings resulting from the Le-Nature’s case in the previous year was €36.7 million. The settlement payments were made in the financial year 2012.
The EBT margin - the ratio of earnings before taxes to sales- improved from 3.0% in the previous year to 3.7% in 2012. Adjusted to exclude the one-time expense, Krones’ EBT margin was 5.1% in 2012 (previous year: 4.5%). Thus, the company achieved its target of an operating EBT margin of more than 5% in the reporting period. Earnings in all three of the company’s segments also developed according to plan in 2012.
Krones’ net income was up 53.3% to €67.0 million in 2012. The increase in net income was far bigger than the increase in EBT because the company’s tax rate decreased from 41.5% to 31.6%. In 2011, Krones had to pay back taxes for previous years following a tax audit.
Earnings per share came to €2.22 in the reporting period (previous year: €1.45). Adjusted to exclude the one-time expense, earnings per share would be €3.07 (previous year: €2.33).
Despite the payments Krones made to settle the legal disputes in the US in 2012, the company generated positive free cash flow of €30.6 million in 2012. At the end of 2012, Krones held cash and cash equivalents totalling €132.9 million (previous year: €125.5 million) and had no bank debt.
Given the positive operating trend in the financial year 2012, the Supervisory Board and the Executive Board will propose to the shareholders’ meeting a dividend of €0.75 per share (previous year: €0.60 per share).
Krones will publish a report on expected developments for the financial year 2013 as well as the complete financial statements for 2012 on the day of the company’s financial press conference, which will take place on 24 April 2013.All figures stated here are preliminary figures and may change as a result of the auditors’ findings.
