Powered by China, Deutz Earnings Surge 37%
In its interim report for the first half of 2018, engine maker DEUTZ AG reports that in the first half new orders surged nearly 37 percent to €1.096 billion. Unit sales in the first half of 2018 came to 105,201, which included 6,345 electric motors sold under the Torqeedo brand.
This was an increase of 32.2 per cent on the number of engines sold in the prior year period (H1 2017: unit sales of 75,599). Revenue amounted to €877.6 million, which was 19.5 percent higher than the €734.5 million generated in the first half of last year. DEUTZ also saw a further double-digit percentage increase in revenue in the second quarter of 2018, relative to both the first quarter of the current year and the second quarter of 2017.
While the company saw orders and revenue surge, it also recorded a significant jump in operating profit. Operating profit (EBIT before exceptional items) came to €33.4 million in the first half of 2018. Adjusted for effects on earnings in connection with the DEUTZ Dalian joint venture, it stood at €47.5 million.
“DEUTZ’s business performance in the first half of 2018 exceeded our expectations,” said the Chairman of the DEUTZ Board of Management Dr Frank Hiller, before adding: “The steps that have been taken to improve efficiency are having the desired impact. By making changes to our market
presence in China, we are looking to bolster our successful growth strategy.” DEUTZ is currently reorganizing its activities in China, the world’s largest engine market, in order to make better use of opportunities there in future. The company’s 50 percent stake in the DEUTZ Dalian joint venture is to be sold to the joint venture partner, FAW.