Deutz 2012 net income down 72%

Engine manufacturer Deutz said its 2012 results were hit by tough market conditions and higher costs, leading to a 72% year-on-year drop in net income to €21 million.

Compared to 2011, revenues were down 16% last year to €1.3 billion, while new orders also fell 16% to €1.2 billion. Overall, Deutz sold 178,774 engines last year, compared to 250,598 in 2011.

The company said Europe’s weak economic performance and depressed demand in China had dragged results down. In addition, set-up costs for growth projects and for the production start-up of new engines also took their toll.

But, following a subdued start to 2013, Deutz said it expected the market increasingly to pick up worldwide over the course of the year.

Chairman Dr Helmut Leube said, “We succeeded in implementing some major strategic decisions in 2012 even though business conditions were tough. We laid the foundations for profitable growth by continuing with our product offensive and stepping up our activities in China.”

Deutz forecast revenues of over €1.4 billion this year, together with a “moderate” year-on-year improvement in its EBIT margin.