07.08.2015

A mixed bag for Deutz

Deutz engine has published its first half results of 2015 with lower revenues, but substantially higher profits.

Total revenues for the first six months were €670.7 million, down just over 10 percent on last year. Unit sales fell for the period dropped 21.2 percent to 78,120 engines produced. The Americas and Asia-Pacific regions posted growth, while Europe, the Middle East and African region declined. Net profits increased more than six fold to €16.7 million, due to lower restructuring charges. Looking at the second quarter revenues fell almost 15 percent, while order intake increased more than five percent to €349.7 million. Net profit in the quarter almost tripled to €9 million.

Deutz says that it is adjusting its production capacity in China to reflect the new, lower level of market demand, and is focusing on its existing Deutz Dalian joint venture. The company has also reached an agreement to sell its shares in the joint venture Weifang Weichai-Deutz Diesel Engine in Weifang to its partner Weichai Power.

Deutz expects lower demand in 2015, resulting from the advance sales of engines in 2014. As a result, the company continues to forecast that revenue will decline by around 10 percent this year, with profits improving slightly to about three percent.