Good 2021 results for Same-Deutz Fahr
17 May 2022
Agricultural tractor and harvesting machinery manufacturer, Same-Deutz Fahr (SDF), posted 2021 results and claimed revenues of €1 481 million (a 29% increase on 2020).
In terms of production, SDF manufactured last year 36 210 tractors, an increase of more than 25% on the production in 2019, pre COVID pandemic.
SDF’s CEO, Lodovico Bussolati, explained in a press conference that the revenue increase was particularly healthy in some areas of the world: Europe clocked +13,61% on revenues 2020, while Turkey registered an excellent +27,92% with €145 million revenues in 2021 (it was €36 million in 2019). India also performed quite well with +12,04% in revenues versus 2020.
Other areas of the world that performed well are Australia and New Zealand; in China, the distribution of Deutz-Fahr-branded tractors was further strenghtened with the launch of the tractor Series 6W and 7W equipped with powershift transmissions.
An interesting aspect that Bussolati highlighted is the sound growth in revenues outside the European Union, with 34% of the total group’s sales. The figure was 24% in 2019.
The EBITDA in 2021 was 10.80% with €62 million net profit (after calculating an emergency fund created to cope with eventual losses in Russia, due to nationalization of local assets).
In 2021, SDF completed the transition to EU Stage-5-compliant engines with it own FARMotion 34 and 45 variable-geometry turbocharged diesel engines, covering from 47.8 to 118 kW (65 to 160 hp) output power. Versions up to 55 kW (75 hp) are equipped with external exhaust gas recirculation, oxidation catalyst and diesel particular filter. On higher power versions, the engines mount also selective catalytic reduction.
Bussolati highlighted how SFD started a process already a few years ago to bring back in house component competences: the strategy started with the FARMotion engines, designed by SFD and manufactured in the group’s plant in Ranipet, India (18,038 engines have been produced in 2021, a + 153% increase versus 2020). SDF also designs and manufactures in the Treviglio plant, Italy, a new full powershift transmission, type RVshift, for tractors up to 184 kW (250 hp). Continuous Variable Transmissions have also been introduced, with types T7540, T7560 and T7780. In the same Italian plant are produced also about 16,000 SDF-designed front axles.
According to Bussolati, the strategy to bring core component competence in-house is important for the success of the company. He explained that designing own core components tailored for SDF machines, means that tractors have dedicated components that are optimized under all aspects. Own components design and manufacturing also brings an advantage in the sales of original spare parts. SDF’s CEO commented also that these components are so specific for SDF machines that there is no plan to sell them on the open market too.
In 2021 SDF has invested €63 million in R&D, or 4.3% of its revenues.
SDF’s headquarter in Italy are in Treviglio, in the Bergamo province, that was one of the worse hit by the early COVID pandemic wave in 2019. The plant has been closed for roughly 2.5 months in the spring of 2019 to protect employees from the sweep of contagium.
Since then, the company has opened in the Treviglio plant a vaccination hub that has delivered 40,000 vaccine doses to employees and their relatives, suppliers and citizens residing in the area.
In 2021, SDF has also been able to distribute to its employees a productivity bonus exceeding €5,000 each.