Krones reports record loss

A black year: € 34.5m lost, sales down 22%

Yet supplier 'cautiously optimistic' for 2010

Industry supply giant Krones endured the worst 12 months in its 59-year history in 2009, making a loss of €34.5 million as demand for beverage packaging plant slumped by a quarter.

Order bookings throughout the year fell by 18% to €1.92 billion, while consolidated sales slumped by 22% to €1.87 billion. The German company said all markets bar China showed a “significant decline” in 2009.

The final quarter of 2009 brought some signs of recovery for Krones, with a 10% increase in bookings compared to the fourth quarter, 2008, resulting in an order backlog of €888 million, up from €837 million last year.

The losses of 2009 – in stark contrast to the past nine years of record growth and 2008’s profit of €106.5 million – were ameliorated by what the company described as its “rock-solid financial position”.

Despite 2009’s record loss, free cash flow was upped by 5% to €83 million and Krones said it was debt-free at the end of the year with liquid funds of €135 million, up from €107 million the previous year.

“In view of developments over recent months, Krones is cautiously optimistic for 2010,” the firm said in a statement.

“The company anticipates a turnaround in the overall trend for the first half of 2010, with a concomitant increase in sales during the 2010 business year of 5% to 15%, plus a return to significant positive results.”