DGAP-Adhoc: Krones AG: Krones reaches settlements in US proceedings

Krones AG  / Key word(s): Legal Matter

08.11.2012 16:32

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Ad hoc release

Krones reaches settlements in US proceedings

Neutraubling, Germany, 8 November 2012 - The US company of the Krones
Group, Krones Inc. in Franklin/Wisconsin (USA), and Krones AG, Neutraubling
(Germany), have now settled the legal disputes that have been ongoing in
the US since October 2008. Only one claim for legal fees remains pending.
The proceedings concerned relate to claims for damages asserted by several
American financial service providers, a group of hedge funds and a
liquidator, and most recently investigations by the district attorney in
Pennsylvania. The settlement agreed with the liquidator is still subject to
formal approval by the insolvency court. The proceedings related to the
financial scandal involving the bankruptcy of the US company Le-Nature's.

Against the background of possible risks arising from proceedings in the US
that might otherwise have dragged on for years, Krones decided to bring an
end to the matter by concluding the settlements with the major plaintiffs,
and reaching an agreement with the district attorney as well, at the same
time.

The agreements involve settlement payments amounting to about USD 110
million to the various plaintiffs, plus a payment by Krones Inc. to the US
Treasury amounting to USD 15 million relating to a discontinuation of the
investigation. After factoring in the contribution from the relevant
insurances, there remains a total net impact on Krones' pretax earnings
amounting to approximately USD 100 million. Of this sum, USD 47 million had
already been charged against income in the preceding year. The result for
the 2012 business year has accordingly been debited with an already-formed
provision amounting to about USD 53 million. The possible risk arising from
the pending lawsuit has already been taken into account.

Your contact person:
Olaf Scholz
Head of Investor Relations KRONES AG
Tel.:  +49 9401-70 1169
E-mail:  olaf.scholz@krones.com


08.11.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Krones AG
              Böhmerwaldstraße 5
              93073 Neutraubling
              Germany
Phone:        +49 (0)9401 701169
Fax:          +49 (0)9401 709 1 1169
E-mail:       investor-relations@krones.com
Internet:     www.krones.com
ISIN:         DE0006335003
WKN:          633500
Indices:      MDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard), München;
              Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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