Significant revenue decline for Krone
German machinery manufacturer Krone has closed the 2023-2024 fiscal year with a revenue decline from €3.2 billion to just under €2.4 billion. The company is pushing forward with digitalisation and automation developments.
The revenue drop for Krone, which manufactures both agricultural machinery and truck trailers, is a result of geopolitical turmoil: the war between Russia and Ukraine and the conflict in the Middle East. These conflicts are causing significant uncertainty among farmers, contractors, and transport companies.
17% revenue decline in the agricultural sector
Krone’s revenue in the agricultural division decreased by €170.5 million (17%), from €1,006.1 million to €835.6 million. In the trailer manufacturing division, revenue fell by 26.3%. Despite this major setback, Krone is continuing the construction of a modern parts warehouse in Spelle (Germany). The company is also pushing forward with digitalisation and automation developments. Additionally, Krone remains committed to its plans to produce mowers and tedders at its Olive Branch factory in the United States.
Recovery expected by mid-2025
Given the uncertain political developments, Krone expects a slight recovery starting in mid-2025. Many customers are hoping for signs of greater stability and long-term growth. “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,” says David Fink, CEO of Krone.
