The German machinery manufacturer Krone has closed its 2023-2024 fiscal year with a significant revenue decline, marking a challenging period for the company amidst global geopolitical turmoil. The company, known for its agricultural machinery and truck trailers, saw its revenue drop from €3.2 billion to just under €2.4 billion. This substantial decrease is largely attributed to the ongoing conflicts in Ukraine and the Middle East, which have created significant uncertainty among farmers, contractors, and transport companies.
The agricultural sector, a core division for Krone, experienced a notable 17% revenue decline. The division’s revenue decreased by €170.5 million, falling from €1,006.1 million to €835.6 million. The trailer manufacturing division faced an even steeper decline, with revenue dropping by 26.3%. These figures underscore the profound impact of geopolitical instability on global supply chains and consumer confidence.
Despite these setbacks, Krone remains steadfast in its commitment to innovation and growth. The company is continuing the construction of a modern parts warehouse in Spelle, Germany, a project aimed at enhancing operational efficiency and customer service. Additionally, Krone is pushing forward with digitalisation and automation developments, recognizing the importance of technological advancements in maintaining competitiveness in the market.
Krone’s resilience is further evident in its plans to produce mowers and tedders at its Olive Branch factory in the United States. This strategic move underscores the company’s long-term vision and commitment to expanding its global footprint.
Looking ahead, Krone expects a slight recovery starting in mid-2025, contingent on the stabilization of political developments. Many customers are eagerly awaiting signs of greater stability and long-term growth. In the meantime, the company is implementing reduced working hours for employees in response to lower demand for machinery in Germany and other international markets.
David Fink, CEO of Krone, acknowledges the challenges but remains optimistic about the future. “As long as demand for machinery in Germany and other international markets remains lower than in previous years, Krone will continue implementing reduced working hours for employees,” Fink stated. This proactive approach reflects Krone’s dedication to navigating the current economic landscape while preparing for a more stable and prosperous future.