Rises in new orders, revenue and operating profit have been reported in engine manufacturer Deutz’s full-year financial results for 2017.
All the major application segments of the German-based company were said to have seen increases in new orders, resulting in total new orders reaching €1.56 billion. This represents a 23.4% increase from the 2016 figure of €1.26 billion.
Deutz sold almost 162,000 engines in 2017, up 22% on the previous year, with the material handling, construction equipment and agricultural machinery application segments all enjoying significant growth in unit sales.
Revenue increased by 17.4% to €1.48 billion, compared to €1.26 billion in the previous year.
The EMEA (Europe, Middle East and Africa) region experienced a 21.9% increase in revenue, while an 11.9% increase was seen in the Americas region. Revenue in the Asia Pacific region remained on a par with 2016 figures.
Deutz’s EBIT (earnings before interest and taxes), not including exceptional items, rose by 81.2% to €42.4 million, compared to 2016, and the EBIT margin before exceptional items was 2.9% - up on the 1.9% recorded in the previous year.
Net income increased from €16 million in 2016 to €121.2 million in 2017.
Dr Frank Hiller, chairman of the Deutz board of management, said, “2017 was a very successful year for Deutz. We have made improvements to our operating performance, got people excited about the new era we are about to embark upon, and mapped out the strategic course we intend to follow.
”The aim with our new E-Deutz strategy is to become market leader for innovative drive systems in the off-highway segment.
“We now need to keep the momentum from 2017 going.”
The company said it expected the engines business to continue benefitting from the robust global economy and positive unit sales trends in key application segments. For the year ahead, Deutz has therefore forecast a marked increase in revenue and a moderate rise in the EBIT margin before exceptional items.