Krones plans job cuts to restore profitability

Krones, a leading manufacturer of canning and packaging technology, is planning job cuts to restore profitability.

While revenues rose by 2.7 per cent to €3.96 billion (US$4.3bn) in 2019, despite the difficult economic environment, high costs – especially for labour – product mix and structural measures hit profitability, the German company reported.

Pre-tax profit fell to €41.7 million ($45.25) in 2019, from €204.3m ($221.70m) in 2018 .

Krone’s orders improved by 3.2 per cent, to €4bn ($4.34bn) in 2019, while in the fourth quarter they were up 10.7 per cent year-on-year. Orders at the end of 2019 totalled €1.39bn ($1.51bn), exceeding last year’s figure by 9.9 per cent.

Krones will publish its annual report for 2019 and outlook for 2020 on 19 March. On the same day, it will also provide further details of structural measures being taken to secure sustained improvements in efficiency and profitability.

The company reported that it is making good progress with implementation of the measures, which include a reduction in the workforce. The executive board is confident that these will already have a positive impact on earnings in 2020.