Deutz revenues climb 19%
By Mike Brezonick09 November 2022
Following a successful first half of the year, Deutz said it continued to generate growth and recorded double-digit increases in unit sales and revenue in the first nine months of 2022.
The war in Ukraine did not have a material adverse effect on business performance. However, as for other companies, the impact of the war on energy and raw material prices and on the global flow of goods around the world was very tangible, the company said.
In the first three quarters of 2022, new orders received by the Deutz Group amounted to €1.519.7 billion. The regional situation was mixed, with new orders rising markedly in the Americas and Asia-Pacific regions but declining slightly in the EMEA region. The application segments also presented a disparate picture, Deutz said. Material handling, agricultural machinery, stationary equipment and the service business generated increases in new orders – with some of them reporting double-digit percentage growth – while there were significant year-on-year decreases for construction equipment and miscellaneous.
Orders on hand continued to climb, advancing by 13.4% to reach €828.8 million as of Sept. 30. This points to a stable order situation in the months ahead, Deutz said. Of that total, orders on hand attributable to the service business rose by 62.7% to €53.2 million, as compared to €32.7 million during the same period of 2021.
“Our orders on hand stood at the very high level of approximately €830 million at the end of September,” said Dr. Sebastian C. Schulte, Deutz CEO. “That provides a stable starting position for the coming months. Market demand remains particularly strong for engines with a capacity of less than 4 L. At the same time, our book-to-bill ratio of 0.95 in the third quarter indicates that market growth is gradually slowing down. However, we have set a course that will make Deutz more resilient in periods of economic weakness.”
With a total of 169,352 units sold, the Deutz Group registered an increase in unit sales of 16.5% in the reporting period. Within this total, the number of Deutz engines sold rose by 12.6% to 130,875. The company’s Torqeedo subsidiary sold 38,477 electric boat drives, which was 32.3% more than in the prior-year period.
The uptrend in unit sales was generated across all application segments. The region with the sharpest increase was the Americas, where the rise of 48.5% was primarily attributable to higher unit sales of electric boat drives. The EMEA region, which is Deutz’s largest sales market, saw its unit sales climb by 10.8%.
Reflecting the growth in unit sales, Deutz’s revenue swelled by 19.0% to €1.395.8 billion in the period. Service business revenue grew to €336.2 million, accounting for around 25% of consolidated revenue. Given the considerable geopolitical uncertainties, Deutz is forecasting unit sales of between 175,000 and 185,000 engines for 2022. This should result in an increase in revenue to between €1.75 billion and €1.85 billion, the company said.