Deutz Increases Engine Orders During First Half of 2016
Aug. 5, 2016
Working in a challenging economic environment, Deutz Group reported increased orders in the first half of 2016, with engine orders increasing 1 percent to €677.2 million (about U.S. $750 million). Orders in the second quarter of 2015 totaled €349.9 million, a 6.9-percent jump compared to the first quarter figure of €327.3 million, and slightly ahead of last year’s second quarter total of €349.7 million.The number of engines sold decreased to 69,705, a 10.8-percent decline compared to the first half of 2015 when 78,120 engines were sold. The sale of 37,594 engines sold in the second quarter topped the first quarter by 17.1 percent, but were down 8.8 percent compared to the second quarter of 2015.Revenue for the first six months of 2016 was €644.4 million, a 3.8-percent decline compared to the same period in 2015. Revenue increased 1 percent in Europe, the Middle East and Africa and 10.3 percent in Asia Pacific, but slid 22.4 percent in the Americas. Second quarter revenue slipped 2.2 percent year over year, dropping to €344.2 million, although it jumped 14.7 percent compared to the first quarter.First half operating profit (EBIT), however, was €20.7 million, compared to €20.3 million in the year-ago frame. EBIT margin improved to 3.2 percent.“The first half of 2016 proceeded as we had expected, so we are well on the way to achieving our forecast for the year as a whole,” said Dr. Helmut Leube, Deutz chairman of the board.Deutz has introduced a program to optimize its network of sites in Germany, and the program is progressing well, the company said. Its new shaft center in Cologne-Porz, its largest site is now in operation. “This means that our efficiency measures aimed at optimizing our network of sales are right on schedule,” said Deutz chief financial officer Dr. Margarete Haase. “We are very well positioned to generate a significantly higher EBIT margin again if unit sales increase.”
