Deutz returns to growth after a challenging year
By Ian Cameron29 April 2021
Company outlines upbeat prospects despite COVID-19
Despite the rigours of COVID-19, engine maker Deutz has reported positive news.
Dr. Frank Hiller, chairman of the Board of Management of Deutz said “After a challenging year dominated by the coronavirus pandemic, we are optimistic about 2021. The preliminary results for the first quarter show a return to an upward trajectory.
“We have made a successful start to the year, with new orders rising by a third compared with the prior-year period and a significant improvement in profitability. We expect that our customers will remain keen to invest going forward.”
Against this backdrop, Deutz has raised its guidance for 2021. The company said it anticipates revenue of €1.5 billion to €1.6 billion (previously: at least €1.4 billion) and an EBIT (earnings before interest and taxes) margin before exceptional items of between 1.0% and 2.0% -previously at least break-even level, the company said.
In a statement the company said that in 2020 it “laid the foundations that will enable it to maintain its competitiveness and generate further growth over the long term.
“The key building blocks of the corporate strategy are a technology-neutral approach to the development of the drive portfolio (focusing on electrification and the use of alternative drive solutions), the expansion and digitalization of the high-margin service business, regional growth initiatives (primarily in the Chinese market), strategic partnerships with industry leaders such as John Deere Power Systems, and the efficiency program that is now under way.”