German OEM, Krone, has reported a sales record of €1.9 billion, reflecting on a solid financial year.
“While many agricultural machinery manufacturers have had to cope with a severe downturn in sales, even in this financial year Krone succeeded in generating a record turnover,” said Krone Head of Marketing, Ingo Lübs.
“With Krone Commercial Vehicles Group sales also at a record high, the Krone Group as a whole generated total sales worth 1.9 billion euros (previously 1.8 billion euros). Domestic sales for the Krone Group rose to 515.5 million euros, reflecting an increase of 1.6 per cent over the previous year.
“About 30.8 per cent of the domestic sales were accounted for by the agricultural machinery and 69.2 per cent by the commercial vehicle business. 27.2 per cent of all Krone Group sales were generated in Germany, which compares with 28.4 per cent over the previous year.
“Sales revenues in foreign markets amounted to 1.4 billion euros which reflects a 7.6 per cent increase over the previous year. About 30.7 per cent of the export sales were accounted for by agricultural machinery and 69.3 per cent by commercial vehicles, reflecting a slight increase to 72.8 per cent from 71.6 per cent in the previous year.
“In the 2016/2017 financial year, Commercial Vehicles group sales slightly increased over the previous year to 1.3 billion euros, maintaining the previous 27.2 per cent market share in Germany and securing sales worth 356.6 million euros (364.7 million euros in the previous year). These results make Germany the group’s largest single market.
“In foreign markets, Krone has been able to increase its sales to 956 million euros (previous 855 million euros), with the Western European markets accounting for 43.8 per cent (previously 41 per cent) and Eastern Europe for 21.6 per cent (previously 26.5 per cent) of sales.
“The agricultural machinery division benefitted from a relieved dairy market as milk prices started to recover in late 2016. This trend was also beneficial for Krone, so that the company was able to increase its sales revenues to 582.8 million euros (previously 569.8 million euros) in a buoyant market in the second half of the financial year. 27.3 per cent of these sales were generated in Germany (up from 25.1 per cent in the previous year) while Western European markets contributed 33.1 per cent (previously 32.4 per cent), Eastern Europe 9.9 per cent (previously 10.6 per cent) and the rest of world 14.3 per cent (previously 11.4 per cent). Financial position/funding in the financial year 2016–2017, the balance total increased to 1,031.3 million euros from 931.7 million euros.
“Total investments of 76.0 million euros (previously 37.1 million euros) and changes in the consolidated group of 6.9 million euros are offset by depreciation of 31.1 million euros in both business segments. The growth mainly results from a number of investments in various production sites and the first-time consolidation of Brüggen Holding GmbH & Co. KG.On account of the annual surplus, equity capital increased from 445.3 million euros to 486.1 million euros on the balance sheet date. The equity capital ratio decreased slightly from previously 47.8 per cent to 47.1 per cent in 2016–2017 and was accounted for by a higher Working Capital on the balance sheet date and the investments mentioned. In the reported period, the medium and long-term debt capital increased to 286.1 million euros from 254.3 million euros.
“The Group currently has 772.1 million euros (previously 700.6 million euros) available in the form of medium and long-term capital. This covers fixed assets and the entire stock assets as well as many of the receivables,” he said.
(Image: Krone Head of Marketing, Ingo Lübs.)