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Kamis, 19 Maret 2020 05:51:00

DEUTZ achieves its targets for revenue and the EBIT margin in 2019 and confirms its medium-term targets for 2022

Revenue surges in the Americas and Asia-Pacific
Profitable service business maintains its rapid growth
'Transform for Growth' efficiency program launched with the aim of increasing competitiveness
Forecast for 2020 heavily affected by weak economic conditions
Proposed dividend of €0.15 per share, unchanged on 2018
 
COLOGNE, GERMANY - 18 March 2020 - DEUTZ, one of the world's leading manufacturers of innovative drive systems, can look back on a satisfactory financial year overall, even though economic conditions became increasingly gloomy over the course of 2019. "Despite a challenging fourth quarter, we attained the targets that we had set ourselves for revenue and the EBIT margin before exceptional items in 2019.

We also successfully forged ahead with implementing our growth initiatives. DEUTZ faces a year of transition in 2020, but we are well on track to achieve the medium-term targets that we have set ourselves for 2022. These are revenue of more than €2 billion and an EBIT margin before exceptional items of between 7 percent and 8 percent. In our high-margin service business, we now hope to achieve our revenue target of approximately €400 million in 2021, which is a year earlier than planned," said Dr. Frank Hiller, Chairman of the Board of Management of DEUTZ AG.

New orders affected by weakening of demand as a result of the economic climate
New orders totaled €1,654.3 million in 2019, which was down by 15.3 percent on the strong figure for the previous year. As expected, the slowing economy depressed demand across all of the main application segments. Moreover, the figure for 2018 had been boosted by spending brought forward due to the introduction of the EU Stage V emissions standard.

Unit sales slightly lower than in prior year
The DEUTZ Group sold a total of 211,667 engines in 2019, which was 1.4 percent fewer than in the prior year. Unit sales increased by a significant 23.7 percent in Agricultural Machinery, but fell sharply in the other main application segments: by 8.1 percent in Material Handling, by 10.4 percent in Construction Equipment, and by 15.1 percent in Stationary Equipment. Unit sales of boat drives at Torqeedo continued to surge, jumping by 104.2 percent to 20,942.

Revenue rises by 3.5 percent to €1,840.8 million
DEUTZ's revenue rose by 3.5 percent to €1,840.8 million in the reporting period. It therefore achieved its revenue guidance for 2019, which forecast that revenue would increase to more than €1.8 billion. The Agricultural Machinery application segment performed particularly well, delivering double-digit revenue growth of 12.3 percent.

The revenue increases in the Material Handling segment and the high-margin service business were also healthy at 6.9 percent and 6.8 percent respectively. However, revenue in the Construction Equipment and Stationary Equipment application segments declined by 1.8 percent and 6.3 percent respectively compared with the previous year.

All regions contributed to the increase in revenue, with the Americas (up by 10.7 percent) and Asia-Pacific (up by 7.6 percent) delivering the strongest growth.

In the Americas region, DEUTZ particularly benefited from the ramp-up of new engine series and expansion of the service business with Xchange products. The main factors in the substantial increase in revenue generated in the Asia-Pacific region were revenue growth in China and the expansion of business with new customers. (*).