Revenues for the first half of 2009 were less than half of what they were for the same period in 2008 for engine maker Deutz AG, posting €406.9 million (about U.S. $580 million), compared with €829.1 million for the year-ago period. Second-quarter revenues dropped by almost as much, to €200 million (U.S. $285.6 million) compared with €395.8 million for the second quarter last year.
However, demand for Deutz engines and services stabilized, the company said. The company’s unit sales and revenue remained virtually unchanged in the second quarter compared to the first quarter, at about 30,000 engines and €220 million. The operating loss incurred fell sharply from €19.9 million in the first quarter to €3.5 million in the second quarter. The company attributes the trend to cost-saving initiatives. After posting a €38.2 million operating profit in the first half of 2008, it incurred an operating loss of €23.4 million for the first six months of 2009.
Deutz said it does not expect to see a reversal of fortunes for 2009 as a whole, but expects the level of new orders to stabilize with unit sales declining about 50 percent year over year. The company expects total cost savings for the year to be about €100 million, although this will not compensate for the losses caused by economic conditions.
“Despite the enormous challenges that lie ahead, we remain confident that we are on the right track and will emerge stronger from this crisis,” said Dr. Helmut Leube, chairman of the board.
Deutz is based in Cologne, Germany.