Krone remains strong on the market: record sales in 2017

In the agricultural equipment segment, the market recovery in milk prices had a positive effect from the end of 2016. Krone also benefited from this trend and was able to increase its revenue to EUR 582.8 million (previous year: EUR 569.8 million) thanks to a pleasing market trend, particularly in the second half of the financial year. The German market contributed 27.3% (previous year: 25.1%), Western European markets 33.1% (previous year: 32.4%), North America 15.4% (previous year: 20.4%), Eastern Europe 9.9% (previous year: 10.6%) and other markets 14.3% (previous year: 11.4%).

In the 2016/2017 financial year, the balance sheet total increased from EUR 931.7 million to EUR 1,031.3 million. The total investment volume of EUR 76.0 million (previous year: EUR 37.1 million) and the changes in the scope of consolidation of EUR 6.9 million are offset by depreciation and amortization of EUR 31.1 million in both divisions. The additions are mainly the result of various investments at various locations and the first-time full consolidation of Brüggen Holding GmbH & Co.

Due to the net profit for the year, equity increased to EUR 486.1 million as at the balance sheet date (previous year: EUR 445.3 million). The equity ratio fell slightly from 47.8% in the previous year to 47.1% due to higher working capital as at the balance sheet date and the aforementioned investment activities. In the reporting period, medium and long-term debt capital increased to EUR 286.1 million (previous year: EUR 254.3 million). The Group has medium and long-term capital of EUR 772.1 million (previous year: EUR 700.6 million) at its disposal. This covers not only fixed assets, but also all inventories and the majority of receivables.

Employees

The number of Krone Group employees worldwide rose to 4,497 (previous year: 4,281) in the past financial year due to the expansion of the Group. The number of trainees fell slightly to 243 (previous year: 261).

Investments to secure the future

The Krone Group invested around 76 million euros (previous year: 37.1 million euros), mainly in a new color scheme at the Werlte site, the construction of a new central Spare Parts Logistics distribution center for all commercial vehicle products in Herzlake and the automated production of components at the Herzlake site.

At the Spelle site, the machining technologies and capacity in mechanical production were further adapted to the growing requirements. In addition, the first industrial robot was used to load and unload machine tools.

Bernard Krone, Managing Partner of the Krone Group (pictured left), is satisfied with the course of the financial year. "In the agricultural machinery sector, the low milk price initially caused us some concern; fortunately, it recovered significantly over the course of the year. Our strategy of moving even closer to our customers with new branches is also paying off in the commercial vehicle sector. We have also noticed that we are increasingly in demand as a service provider - especially in the areas of data digitization and telemetry. These features play a key role in enabling machines and vehicles to work even more efficiently and economically. With our high level of investment at the Werlte and Herzlake sites, we are also making a clear commitment to the region. In general, we are confident about the future, as Krone serves two of the global megatrends: an increase in the world's population and connectivity. As a result, the demand for food and the increase in freight traffic will continue to rise." red