Following on from the record results achieved in 2011, Deutz AG has now delivered a strong business performance in the first quarter of 2012.
Deutz won new orders amounting to €390 million in the first quarter of 2012. This figure was up by more than a quarter compared with the final three months of 2011 (Q4 2011: €310 million) and only slightly below the €409 million taken in the very strong first quarter of 2011. There was a year-on-year increase in orders across all application segments except engines for stationary equipment.
Cologne-based engine manufacturer Deutz sold 46,461 engines in the first three months of this year, which was approximately 4% fewer than in the corresponding period last year (Q1 2011: 48,416 engines). The decline in the euro zone caused by the economic conditions was compensated for to a large extent by sharp growth of 36% in the North America region.
Despite selling fewer engines, Deutz was able to increase its revenue to €337 million (Q1 2011: €336 million). The reason for this small year-on-year rise was the growing proportion of engines that meet the new emissions standards in Europe and North America and are considerably more complex and durable. Deutz expects this positive trend to continue over the coming quarters and years.
At just over €10 million, operating profit (EBIT) was lower than the impressive €18 million generated in the first quarter of 2011. However, the results for the first quarter – traditionally a difficult time of the year – are not representative of the year as a whole. The main reasons for the reduction were extensive maintenance work carried out on a transfer line in production, weaker business performance in China during the first quarter, the cost of other projects in Asia and set-up costs linked to the launch of new products. Equity was strengthened by a further fall in interest expenses and taxes.
Deutz has therefore confirmed the outlook for 2012: "We are adhering to our forecast for this year. On the basis of stronger service business, the improved level of new orders and an increasing proportion of the fleet accounted for by new and significantly more durable engines, we predict that our revenue and EBIT margin will remain at the 2011 level. In the medium term, we also see good prospects for further profitable growth, especially in the emerging markets. Deutz is optimally equipped to face the future", said Dr Helmut Leube, Chairman of the Board of Management of Deutz AG.