Deutz Improves EBIT, Boosts New Engine Orders in First Nine Months of 2016

Deutz AG recorded €935.3 million (about U.S. $1.01 million) in new orders, about even with the first nine months of 2015 (€932.9 million.) In the third quarter, Deutz received orders totaling €258.1 million, down by 1.6 percent compared to the third quarter of 2015.

     The number of engines decreased 6.3 percent to 100,439 in the first nine months compared to last year. Third quarter unit sales totaled 30,733 engines, a 5.6 percent year-over-year increase compared to 29,116 engines in Q315.

     Revenue increased 0.7 percent to €945.5 million for the nine month period, compared to €938.8 million in the first nine months of 2015. Revenue declined 19.1 percent in the Americas, increased 5 percent in Europe, Middle East and Africa and 19.7 percent in Asia Pacific.

     EBIT nearly doubled during the nine-month period from €10.6 million last year to €19.7 million this year, partly because of a decrease in depreciation and amortization.

     “If our unit sales increase, we will be able to further improve our EBIT margin because of the steps that we have taken to boost efficiency,” said Deutz’ chief financial officer Dr. Margarete Haase.

     “Deutz is well positioned for the future,” said Deutz chairman Dr. Helmut Leube. “In recent years we have laid essential foundations for Deutz’ future success by updating the product portfolio, optimizing our network of sales, and winning new customer projects.”

     Duetz expects for the full year that revenues will be flat or rise slightly, with moderate increases in EBIT.