Deutz Improves EBIT, Boosts New Engine Orders in First Nine Months of 2016

Deutz AG recorded €935.3 million (about U.S. $1.01 million) in new orders, about even with the first nine months of 2015 (€932.9 million.)
Nov. 11, 2016
2 min read

Deutz AG recorded €935.3 million (about U.S. $1.01 million) in new orders, about even with the first nine months of 2015 (€932.9 million.) In the third quarter, Deutz received orders totaling €258.1 million, down by 1.6 percent compared to the third quarter of 2015.

     The number of engines decreased 6.3 percent to 100,439 in the first nine months compared to last year. Third quarter unit sales totaled 30,733 engines, a 5.6 percent year-over-year increase compared to 29,116 engines in Q315.

     Revenue increased 0.7 percent to €945.5 million for the nine month period, compared to €938.8 million in the first nine months of 2015. Revenue declined 19.1 percent in the Americas, increased 5 percent in Europe, Middle East and Africa and 19.7 percent in Asia Pacific.

     EBIT nearly doubled during the nine-month period from €10.6 million last year to €19.7 million this year, partly because of a decrease in depreciation and amortization.

     “If our unit sales increase, we will be able to further improve our EBIT margin because of the steps that we have taken to boost efficiency,” said Deutz’ chief financial officer Dr. Margarete Haase.

     “Deutz is well positioned for the future,” said Deutz chairman Dr. Helmut Leube. “In recent years we have laid essential foundations for Deutz’ future success by updating the product portfolio, optimizing our network of sales, and winning new customer projects.”

     Duetz expects for the full year that revenues will be flat or rise slightly, with moderate increases in EBIT.

About the Author

Michael Roth

Editor

Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.

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