German-based engine manufacturer Deutz has confirmed a 5% annual revenue increase to €1.5 billion for 2014.
Net income for 2014 was €19.5 million, compared with €36 million recorded the previous year. The figures for 2014 had been affected by costs totalling €18.9 million, which included improvements made to its production sites in Germany.
The company’s order book for 2014 was €1.37 billion, down from €1.65 billion a year earlier.
The number of engines sold rose by 6% in 2014 to 196,403, compared to 184,028 units in 2013. This was attributed to increased demand within the mobile machinery segment.
The company said that new EU Stage IV/Tier 4 emissions standards for engines under 130kW had led to European customers placing more orders than they required during the first three quarters of 2014 - before compliance with the latest regulations came fully into effect last October.
As a result, Deutz said its engine sales had been negatively affected towards the end of 2014, with new orders falling 32.3% year-on-year.
For its 2015 outlook, the company said it would be “a year of transition” due to emissions changes, forecasting its revenues would fall by 10% for the year.
Dr Helmut Leube, chairman of the board of management, said, "We saw in 2014 just how important it is to operate flexibly. We are also concentrating on further improving our quality and efficiency.
“In addition to the measures we have already taken to optimise our production sites in Germany, we plan to consolidate our activities in China and to focus on our successful Deutz Dalian joint venture there.”