Deutz enjoys record year for orders
By Sarah Ann McCay20 March 2014
German engine manufacturer Deutz saw improvements in all key figures for its year-end 2013 results.
The company received orders worth €1.65 billion (US$2.3 billion) in 2013, up 33.4% on the previous year's figure of €1.2 billion (US$1.65 billion), and a new record for the company in its present structure.
Deutz attributed its growth in new orders to winning new customers, an increasing proportion of higher value products and the advance production of engines in anticipation of new emissions standards.
In 2013, Deutz sold 184,028 engines, an increase of 2.9% on unit sales for 2012, which stood at 178,774 engines.
Deutz also reported growth in revenues, up 12.5% to €1.45 billion (US$2 billion) compared with €1.3 billion (US$1.8 billion) in 2012. In 2013, revenues rose at a stronger rate than unit sales, primarily on the back of sales of higher-value engines that meet the new emissions standards.
Operating profit was also up, with growth of 28% to €47.5 million (US$65 million), an increase of €10.4 million (US$14 million) on the previous year.
Revenue generated by Deutz's biggest investment in China, Deutz (Dalian) Engine rose at an exceptional rate of more than 30% to the equivalent of €319 million (US$440 million).
“Our success in China is the result of greater market acceptance, combined with our successful efficiency programme and quality offensive,” commented Dr Margarete Haase, CFO for Deutz.
Net income increased from €21 million (US$29 million) in 2012 to €36 million (US$50 million) in 2013.
For 2014, the company is forecasting low double-digit revenue growth.