Krone Group remains on a good course

Krone was also able to slightly increase its turnover in the agricultural machinery sector once again, recording sales of EUR 568.6 million for the 2015/2016 financial year (previous year: EUR 554.5 million). The German market accounted for 24.9% (previous year 27.9%), Western European markets for 32.5% (previous year 32.2%), North America for an unchanged 20.5%, Eastern Europe for 10.7% (previous year 11.3%) and other countries for 11.4% (previous year 8.1%).

Due to the net profit for the year, the Krone Group's equity increased by EUR 47.8 million to EUR 445.3 million (previous year: EUR 388.5 million). The equity ratio climbed to 47.8 percent (previous year 45.9 percent). The Group has medium and long-term capital of EUR 700.6 million (previous year: EUR 672.4 million) at its disposal. This covers not only fixed assets, but also all inventories and the majority of all receivables.

In Germany, the Krone Group recorded total sales of 504.5 million euros. This corresponds to an increase of 4.6 percent compared to the previous year. Krone generated around 28.1 percent of its domestic turnover in the agricultural machinery sector and around 71.9 percent in the commercial vehicle sector. Overall, the Krone Group generated 28.2 percent of its turnover in Germany (previous year 29.4 percent). At 71.8 percent, the foreign share of turnover was slightly above the previous year's level (70.6 percent) and rose by 126.2 million euros to 1.28 billion euros. This corresponds to an increase of 10.9%. Krone generated 33.3 percent of foreign sales in the agricultural machinery sector, while 66.7 percent was generated in the automotive technology sector.

Employees

In the past financial year, the Krone Group employed an average of 4,281 people worldwide (core workforce, previous year 3097). This includes an average of 261 trainees (previous year 220). The reason for the sharp increase in the number of employees is the expansion of the Krone Commercial Vehicle Group following the merger of Krone and Brüggen. In addition, temporary workers were taken on as permanent employees at the Spelle production site, particularly in the agricultural machinery sector.

Investments to secure the future

Close to the customer - Krone consistently pursues this maxim. In 2016, Krone installed two new subsidiaries in the agricultural machinery sector - in France and China. The decision to relocate the American headquarters from Memphis (Tennessee) to Shelbyville (Indiana) in the coming years was also made with this in mind. In the commercial vehicle sector, Krone is planning new Krone Centers in France and the Netherlands and opened a new center in Turkey. In addition, the new Krone Used Center (marketing of used vehicles) at the Werlte site was completed in the past financial year. As part of the merger of the Krone vehicle plant with Brüggen, the company also announced a significant investment package in the modernization and digitalization of the commercial vehicle production sites. Krone has budgeted investments of around 50 million euros for the Werlte site alone.

"The milk price crisis and the effects of the Russia-Ukraine conflict have had a noticeable impact on our business areas. It is therefore all the more remarkable that we were still able to increase our turnover," concludes Bernard Krone, Managing Partner.

"Our customers also appreciate our philosophy, which we have been living by for 110 years as a family business. The values that my great-grandfather and company founder, master blacksmith Bernhard Krone, exemplified back in 1906 still apply to us today - namely diligence, honesty, customer proximity and common sense," continues Krone, who is also optimistic about the company's future prospects. "Even though we expect a slight decline in turnover for the Agricultural Equipment business division in the current financial year due to the aftermath of the milk price crisis, we are fundamentally confident. This is because two of the global megatrends - an increase in the world's population as well as connectivity and digitalization - and the resulting rise in demand for food and the increase in freight transport will have a positive impact on the Krone Group's growth in the long term."