08.08.2014

Mixed result for Deutz

Deutz engine has published its first half results with higher revenues, but lower profits and order intake.

Total revenues for the six months were €753 million up just over 13 percent on last year, while order intake slipped almost 12 percent to €746.8 million. Pre-tax profits plummeted from €7.5 million last year to €2.9 million this year. due entirely to a one off charge of €13.9 taken in the second quarter
“relating to the optimisation of the company’s production facilities for compact engines and customised solutions”.

Looking at the second quarter revenues improved just over 10 percent to
€410.7 million, while order intake dropped 27 percent to €332.6 million. Pre-tax profits dropped from €15.2 million last year to €2.7 million this year due to that €13.9 million write off. Without this they would have been nine percent higher at €16.6 million.

Chairman Helmut Leube said: “We have managed to win major new customer projects during the current financial year. For example, we established a long-term partnership with Tong Yang Moolsan, a Korean manufacturer of agricultural machinery, the first tractor manufacturer in Asia to be supplied by Deutz. This collaboration will strengthen our international presence, particularly in Asia and North America.”

The company confirmed its forecast of low double-digit revenue growth for 2014.