Deutz continued its strong order growth in the second quarter of 2013, winning the highest level of new orders ever achieved under its current business structure for the first six months of the year. The total volume of new orders received in the first half of 2013 grew by more than 20 percent year on year to €843.5 million (about U.S. $1.13 billion). The number of engines sold fell by 8.5 percent compared with the corresponding period of 2012 to 85,907 units.
First-half revenue declined 2.8 percent year on year to €662.1 million (U.S. $884.4 million). This means that revenue continued to outperform unit sales thanks to the growing proportion of higher-value engines that meet the new emissions standards. Orders on hand stood at €352.9 million (U.S. $471.4 million) on June 30. This was up by 41.4 percent on the figure a year earlier and up by almost 30 percent compared with the end of March 2013.
Operating profit was €10.1 million (U.S. $13.5 million), roughly half of its total for the first six months of 2012 because business volumes contracted and amortization of completed development projects rose sharply owing to a number of product launches over the previous 12 months.
Second-quarter revenue in 2013 was €372.2 million (U.S. $497.2 million), 28 percent higher than in the first quarter of this year. Second-quarter EBIT rose by €22.9 million from a Q113 loss of €6.4 million to €16.5 million.
"We expect to generate encouraging growth in our unit sales, revenue and earnings over the remaining course of the year,” said Helmut Leube, chairman of Deutz's board of management. “Revenue is projected to reach at least €1.4 billion (U.S. $1.87 billion) and there is the possibility of even higher revenue in view of the generally strong performance. There are, however, still risks in Europe and China. Our EBIT margin is predicted to exceed 3 percent. We have laid the foundations for further revenue rises in subsequent years thanks to the growth projects that we have already initiated and the increasing proportion of total unit sales generated by higher-value engines that meet the new emissions standards."
Deutz is based in Cologne, Germany.
