Plant and machinery manufacturer Krones (Neutraubling / Germany; www.krones.com) has reported improved figures for sales, incoming orders and earnings for 2005. The company, active primarily in the field of beverage filling lines and packaging machinery, upped its sales by 11.9% over the previous year to just under EUR 1.7 bn, boosted particularly by a strong fourth quarter in 2005.

Krones said it was especially pleased with demand for bottling lines for water and PET beverage packs, without giving further details.

Incoming orders grew by nearly 12% in 2005 to more than EUR 1.7 bn, and net profit increased by 2.2% to EUR 63.4m. The company said profit margins were hit by the struggle for market share in a fiercely competitive, price-driven business environment. The export ratio rose from 82% in 2004 to 87%. About 55% of orders came from outside Europe, 32% from Europe, and, because of the declining level of capital investment in Germany, only 13% (18% in 2004) from the company´s domestic market.

Krones is optimistic about business in 2006. It expects sales to continue rising, particularly through contributions by new lines of business. With increased capital spending totalling EUR 69m, the company plans to upgrade its facilities in Germany and at the same time to wants to raise productivity as a basis for further earnings improvement.