Deutz Increases Engine Orders During First Half of 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).

Michael Roth

Aug. 5, 2016

2 min read

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.”

About the Author

Michael Roth

Editor

Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.