Deutz sees Q2 slump
By Chris Sleight09 August 2012
Engine manufacturer Deutz saw its revenues for the second quarter of the year fall -11.4% compared to the same period last year, to € 344 million (US$ 420 million). It sold 47,392 engines in the period, a -19.4% reduction on the Q2 2011 figure of 58,782 units.
Net profits for the quarter were € 5.8 million (US$ 7.1 million), a -71.3% fall from the second quarter of 2011. However, Deutz said its net profit figure for the most recent quarter was affected by € 5 million (US$ 6.1 million) in one-off items, including funding costs, impairment charges and start-up costs for joint ventures.
Although sales were significantly lower than a year ago, Deutz pointed to an improvement in business since the first quarter of the year. Revenues and unit sales have improved some +2% quarter on quarter, and the company's operating profit, before one-off charges, was also better.
Management Board chairman, Dr Helmut Leube said, "We are confident Deutz is well-positioned for the future and will continue to grow profitably over the medium to long term. Our new joint venture in Shandong is rapidly gaining momentum and should soon enable us to achieve our ambitious goals in Asia. Our plans to set up a joint venture in China with Volvo are also making good headway."