Krones: "No margin above 10%"

Christoph Klenk, Chief Executive Officer and Chairman of the Executive Board at Krones AG since January 1, 2016, wants to increase return on sales from operations before tax of currently below 7% up to 10%. Higher margins seem unrealistic to him. “Our margin has a natural top level. Having for example more than 10% our largest clients most probably would start to put pressure on us,” he told Reuters in an interview prior to the release of new medium-term goals of the Germany-based packaging and bottling machine manufacturer on October, 26.

In July, Klenk reported a decrease of earnings before tax by 3.2% with a decline of the EBT-margin to 6.7% for the second quarter of 2016. He also announced cost-cutting measures.

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