In its preliminary results for the first quarter of 2017, Deutz has reported a successful start to the financial year, which was marked by increases in new orders, revenue and operating profit, and the company expects the upward trend to continue.
New orders were said to stand at €403.2 million, which represented a 23.2% increase on the €327.3 million recorded for the same period in the previous year. It was also a 23.6% rise compared with the fourth quarter of 2016, when there were €326.1 million of new orders.
Unit sales were also up. 37,153 engines were sold, which was a 15.7% rise compared to both the first and fourth quarters of 2016.
Likewise, revenue increased in comparison to both the previous quarter and the corresponding quarter of 2016, amounting to €352.2 million.
Operating profit improved, with EBIT (earnings before interest and taxes) before exceptional items coming in at €7.6 million. This was on a par with the corresponding period in the previous year, but it is worth noting that the 2016 figure was boosted by a contribution of €5.5 million for a licensing transaction in the Deutz Customised Solutions segment. Compared with the fourth quarter of 2016, EBIT before exceptional items rose by €3.9 million.
Disposal of a building lease generated a positive exceptional item of €10 million, leading to a marked increase in EBIT after exceptional items, which climbed to €17.6 million.
For 2017 as a whole, Deutz has forecast a marked rise in revenue and a moderate increase in the EBIT margin before exceptional items.