The release of Deutz financial results highlighted quite a complicated framework for the German engine manufacturer (here, the latest enhancement of the company’s webshop). We’d say complicated because, while last year was quite a successful one, the current year is a bit worrying, due to the Covid-19 pandemic (we’ve talked about how the company has been managing the situation).

Deutz turns to China

Let’s take a step back, however. With an increase in revenue to 1,840.8 million euro and an EBIT margin before exceptional items of 4.3 percent, the updated forecast for 2019 has been achieved. «We have successfully pressed ahead with the implementation of our growth initiatives and are thus still on track to achieve our medium-term targets for 2022», commented Frank Hiller, Chairman of the Board of Management of Deutz AG. «The expansion of the high-margin service business is a mainstay of our growth strategy. We now aim to achieve our 2022 revenue target of approximately 400 million euro a year earlier, in 2021».

Deutz engines available
Frank Hiller, Chairman of the Board of Management at Deutz

Deutz financial results won’t be so good in 2020

Deutz expects a decline in business in 2020. The main reason for this is the downturn in key customer industries as a result of economic conditions. This led to a low level of orders on hand at the end of 2019, a situation that is continuing this year.Growth is expected to drop off particularly noticeably in the first half of 2020 following a weak start.

The establishment of second source suppliers will also have an impact on earnings. Furthermore, the Deutz engine business will be affected this year by customers selling the inventories of engines they had built up before new emissions standards came into force.

The impact of Covid-19, not only in China

The outbreak of coronavirus is taking a significant toll on international transport, travel, industrial logistics chains, and production capacity, both in China and globally. As things stand, Deutz is not aware of any specific issues at its suppliers. Due to the globalized nature of its logistics routes, however, the company can no longer exclude the possibility of its business and its supply chain being affected.

Consequently, Deutz expects the year-on-year fall in revenue in 2020 to be in the low double-digit percentage range.

Highlights

AS Labruna launches the HEVOlution range of hybrid generators

The first model in the range, HEVOlution 80-37, made its world debut at the Metstrade in Amsterdam, the most prestigious international trade fair for nautical components, representing a decisive step towards innovative and environmentally friendly energy solutions.

Diesel of the Year 2025: dawn of the Hyundai DX05 & DX08

The Korean star is also reflected in the Diesel of the Year. South Korea is in the empire of industrial powers, cinema in the author anthology, K-pop in the playlist of teenagers. The 2025 edition is about Hyundai Infracore DX, 4- and 6-cylinder modular (BxS 110x132 mm), which have what it takes to ...

Alternative Engine Award: FPT under the sign of multi-fuel

An award that seems tailor-made for the XC13 by FPT Industrial. It is the Alternative Engine Award. The 13-litre has always been the star of the Cursor family and in the new X version it has been applied since its birth to IVECO trucks and, in the hydrogen version, has been on the ski slopes for thr...

Related articles