Tough half-year for Deutz
By Joe Malone05 August 2016
German engine manufacturer Deutz has announced its half-year results, revealing a 3.8% drop in its revenues to €644.4 million, compared to the same period a year ago.
The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) for the six-month period were down 4.9% year-on-year to €66.9 million.
Deutz’s new orders rose 1% in the first half of 2016 to €677.2 million, compared to the comparable six months in 2015.
The company also revealed it sold 69,705 engines during the six-month period, which was down 10.8% year-on-year.
Regionally, Deutz saw an improvement in its revenues in EMEA (Europe, Middle East and Africa) by 1%, as well as a 10.3% rise in the Asia-pacific region, but saw its revenues decrease 22.4% in the Americas.
Despite falls in the Group’s overall revenues and EBITDA, Helmut Leube, chairman of the board at Deutz, said, “We are well on the way to achieving our forecast for the year as a whole."
The company added that its programme it introduced to optimise its network of sites in Germany was progressing. It said that its new shaft centre in Cologne-Porz – its biggest site – was growing and would be ramped up in the coming months.
"This means that our efficiency measures aimed at optimising our network of sites are right on schedule,” said Margarete Haase, chief financial officer at Deutz, “We are very well positioned to generate a significantly higher EBIT margin again if unit sales increase."
Deutz said it expected the second half of 2016 to be weaker than the first half, given the “tough market environment”.