Krone Group Demonstrates Stability with €2.3 Billion in Revenue

“We have known for years in the commercial vehicle sector that customers’ purchasing behavior is closely and directly linked to the overall economic situation in the short term. We are increasingly observing this behavior in the agricultural machinery segment as well; agricultural service providers and farmers around the world are currently reacting very sensitively to political and economic uncertainties and are hesitant to make new investments. In order to take these developments into account, we invested in production optimization across all locations as well as in the expansion of digitalization and automation during the past financial year. In this way, we can now guarantee the usual highest product quality with maximum flexibility,” explains Bernard Krone, Chairman of the Executive Board of the Krone Group.

Key milestones include, for example, the establishment of an additional production line at the Werlte vehicle plant, particularly for the production of eTrailers (with electric drive axles), Gigant commencing production of its own brake linings in Dinklage, the commissioning of an AI-supported control center for the production of refrigerated trailer components in Lübtheen, and the construction of a new assembly hall at GTS’s Ibbenbüren facility.

As wars and factors such as current international customs policies continue to impact the global economy, Krone expects revenue for the current financial year to remain at last year’s level. Dr. David Frink, CEO of Bernard Krone Holding SE & Co. KG, states: “We must accept that long-term economic trade agreements are no longer as stable as they once were. For an internationally active industrial company like Krone, this represents a major challenge, as we must carefully plan group-wide production as well as our worldwide distribution and service activities.”

Frink expects a market recovery in the medium term. “We are currently seeing a slight recovery in the German agricultural machinery market. In addition, we will gradually establish a new and broader positioning in promising markets such as Asia and India. Likewise, we are observing a recovery in some European commercial vehicle markets, including Belgium, Denmark and Estonia. Furthermore, customers from around the world continue to show strong interest in the Krone brand. Our broad product portfolio and our developments in agricultural machinery and commercial vehicles are receiving very positive feedback. In this respect, as the world’s population continues to grow, we believe that the demand for food and transport will increase accordingly, and we are therefore fundamentally optimistic.”