Mixed Results For Deutz So Far in 2013
Germany’s Deutz AG recently issued quarterly financials are a classic good news/bad news report. On the good news side of the ledger, the Cologne-based diesel manufacturer reported what it said was highest level of new orders, in the first six months of this year, ever achieved under its current business structure.
The total volume of new orders received in the first half of 2013 grew by more than 20 percent to €843.5 million versus €701.0 million in the first half of 2012.
However, Deutz said the number of engines it sold fell by 8.5 per cent compared with the corresponding period in 2012 to 85,907 units from 93,853 units. Further, first-half revenue declined 2.8 percent year-to-year to €662.1 million from €681.0 million last year.
On the other hand, orders on hand stood at €352.9 million as of June 30, 2013, a 41.4 percent increase from the same point in 2012 and an almost a 30 percent increase compared with the end of March 2013.
However, operating profit totaled €10.1 million, a figure Deutz said was roughly half compared with the first six months of 2012. This, the company said, was because business volumes had contracted and amortization of completed development projects had risen sharply due to a number of product launches over the previous twelve months.
In other news, Deutz said its Chinese joint venture Deutz (Dalian) Engine Co. moved from incurring a loss last year, to reporting a modest operating profit for the first half of 2013.
Dr. Helmut Leube, chairman of Deutz's Board of Management, reaffirmed the company’s forecast for 2013 as a whole. "We expect to generate encouraging growth in our unit sales, revenue and earnings over the remaining course of the year. Revenue is projected to reach at least €1.4 billion.
For detailed information about the first half-year of 2013, see the summary of key performance indicators.