Bottling equipment maker Krones' orders rise despite market uncertainty
Krones Reports Strong Second-Quarter Performance Amid Economic Challenges
Order Intake and Financial Performance
July 29 (Reuters) - German bottling equipment maker Krones reported on Wednesday a rise in its second-quarter order intake compared to last year, even as economic uncertainty weighs on customers' investment decisions.
Market Uncertainty and Cost Pressures
Material shortages, fluctuating commodity prices and global supply chain troubles are feeding uncertainty in the market, the company said, with rising costs affecting both suppliers and buyers.
Impact on Customers and Investment Decisions
"The cost pressure is even higher for our customers: energy prices are driving costs for glass, aluminium and PET. That also has impact for their readiness to invest," CEO Thomas Ricker told Reuters.
Key Financial Highlights
• The order intake rose 3.5% from a year ago to €1.34 billion ($1.53 billion) in the quarter
• Q2 revenue was €1.31 billion, broadly in line with what analysts polled by LSEG had expected
• Krones' core profit rose from €139.2 million to €143.9 million, margin improved from 10.6% to 10.8% year-on-year
• The Bavaria-based firm confirmed its targets for 2026
• Shares rose 4.5% by 0940 GMT
Currency Exchange Rate
($1 = 0.8771 euros)
Reporting Credits
(Reporting by Paolo Laudani; additional reporting by Alexander Huebner; editing by Milla Nissi-Prussak)
