NEUTRAUBLING (dpa-AFX) - Shares of Krones AG (KRNTY.PK, KRNNF.PK) were losing around 4 percent in the morning trading in Germany after the beverage filling and packaging company on Wednesday trimmed its forecast for fiscal 2018, citing the result of the first nine months of 2018 and the forecast for the fourth quarter.
Krones now expects an operative EBT margin of approximately 6.5% which is adjusted for the one-time expenses. The previous target was 7%. The revision reflects the rising costs of goods and labour, start-up expenses and one-time costs for the expansion of the global footprint.
Krones now expects a 4% increase in turnover compared to the previous turnover target of 6%. This is due to currency effects and large-scale projects postponed into 2019.
The company sees working capital as a percentage of turnover of 28%.
Krones said it is implementing extensive measures under its Value strategy program to compensate for cost increases and to enhance profitability. Additionally, Krones raised the prices for bottling and packaging equipment and process technology by an average of 4.5% effective May 1, 2018. The strategic measures implemented by Krones have not yet taken full effect.
Overall, Krones maintained its mid-term targets of an 8% EBT margin and a 22% working capital as a percentage of turnover. However, reaching these targets will take one or two years longer than planned.
The new mid-term planning figures are expected to be published in February of 2019 along with the preliminary figures of the financial year 2018.
Krones will publish its quarterly statement for the first nine months on October 25.
In Germany, Krones shares were trading at 77.40 euros, up 4.21%.
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