**Germany**: The Krone Group has announced a substantial drop in turnover for 2023/2024, attributed to geopolitical tensions and trade barriers. Despite challenges, leadership expresses commitment to strategic investments and remains optimistic about market recovery and future projects aimed at enhancing customer relations.
The Krone Group, a major player in the agricultural machinery and transport sectors, reported a significant decline in turnover for the financial year 2023/2024, dropping from 3.2 billion euros to just under 2.4 billion euros. This decrease can be attributed to a combination of global events, including the ongoing war in Ukraine, persistent conflicts in the Middle East, and various trade barriers which have created uncertainty for consumers, farmers, contractors, and transport companies.
These complex factors have led to a notable hesitance among stakeholders to invest in freight space and agricultural technology. In response to these challenges, the Krone Group has reaffirmed its commitment to pursuing strategic projects as it enters the new financial year.
Bernard Krone, the Chairman of the Supervisory Board of the Krone Group, commented on the situation, stating, “In an enormously challenging market environment, we have nevertheless consistently implemented our necessary investments in future projects, such as the completion of the state-of-the-art spare parts warehouse in Spelle, the strategic partnership with the Schwarzmüller Group and various realignments in the areas of digitalization and robotics.” He also revealed plans to manufacture agricultural machinery suitable for the US market at the Krone North America facility located in Olive Branch, Mississippi, with an emphasis on producing mowers and tedders. Krone’s initiatives are designed to enhance customer proximity and foster long-term loyalty, which he believes will yield positive outcomes for the company.
Dr. David Frink, CEO of Bernard Krone Holding SE & Co. KG, also provided insight into the company’s perspective on market recovery, anticipating a slight improvement in conditions from mid-2025 at the earliest. He noted that “many of our customers are currently pinning their hopes on political signals that are geared towards long-term stability, sustainability and growth.” He acknowledged the impact of the current low levels in the German and other international markets, hinting at the potential need for flexible responses, such as implementing short-time working arrangements, to navigate fluctuations.
Despite the challenges posed by the global economic situation and political climate, both Krone and Frink expressed a fundamentally optimistic outlook for the future, citing persistent global demand for high-quality agricultural products, innovative agricultural technology, and efficient transport solutions. The Krone Group continues to position itself strategically for resilience in a variable market environment while expressing gratitude for the support of its employees, customers, and financial partners in its ongoing efforts.
Source: Noah Wire Services
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