Bottling equipment maker Krones' orders rise despite market uncertainty (updated)
UPDATE 1-Bottling equipment maker Krones' orders rise despite market uncertainty Adds comments on business environment and client sentiment in paragraphs 1-3, shares in bullet 5
July 29 (Reuters) - German bottling equipment maker Krones KRNG.DE reported on Wednesday a rise in its second-quarter order intake compared to last year, even as economic uncertainty weighs on customers' investment decisions.
Material shortages, fluctuating commodity prices and global supply chain troubles are feeding uncertainty in the market, the company said, with rising costs affecting both suppliers and buyers.
"The cost pressure is even higher for our customers: energy prices are driving costs for glass, aluminium and PET. That also has impact for their readiness to invest," CEO Thomas Ricker told Reuters.
The order intake rose 3.5% from a year ago to €1.34 billion ($1.53 billion) in the quarter
Q2 revenue was €1.31 billion, broadly in line with what analysts polled by LSEG had expected
Krones' core profit rose from €139.2 million to €143.9 million, margin improved from 10.6% to 10.8% year-on-year
The Bavaria-based firm confirmed its targets for 2026
Shares rose 4.5% by 0940 GMT
($1 = 0.8771 euros)
(Reporting by Paolo Laudani; additional reporting by Alexander Huebner; editing by Milla Nissi-Prussak)
((Paolo.Laudani@thomsonreuters.com;))
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