Deutz HQ in Cologne: Orders up but revenue down
German engine manufacturer 201 Deutz saw new orders totalling €327.3 million for the first quarter 2016, up 2% on the same period last year.
First quarter new orders were up nearly 12% on the last quarter 2015, according to the Cologne-based company’s preliminary results for the first quarter this year.
However, at 32,112 engines, unit sales were 13% lower than they had been a year earlier (Q1 2015: 36,907 engines) but rose by 5.1% compared with the previous quarter (Q4 2015: 30,545 engines).
Revenue was €300.2 million, a drop of 5.6% on year (Q1 2015: €318.1 million) and down by 2.7% on the fourth quarter of 2015 (Q4 2015: €308.6 million).
By contrast, operating profit (EBIT) improved by €13.0 million compared with the previous quarter, reaching €7.3 million. This amount includes a contribution to profits of €5.5 million from a licensing transaction in the Deutz Customised Solutions segment.
Compared with the first quarter of 2015, operating profit fell by €2.8 million. The EBIT margin was 2.4% in the quarter under review.
A company statement said that “overall business performance so far has been in line with expectations”.
Deutz said is stands by its forecast that revenue will stagnate or, at best, rise slightly. Also, the EBIT margin will increase moderately compared with 2015. Market conditions will remain difficult, it noted.
Detailed information on the first three months of this year will be provided in the interim management statement for the first quarter of 2016, to be published on 3 May.
First quarter new orders were up nearly 12% on the last quarter 2015, according to the Cologne-based company’s preliminary results for the first quarter this year.
However, at 32,112 engines, unit sales were 13% lower than they had been a year earlier (Q1 2015: 36,907 engines) but rose by 5.1% compared with the previous quarter (Q4 2015: 30,545 engines).
Revenue was €300.2 million, a drop of 5.6% on year (Q1 2015: €318.1 million) and down by 2.7% on the fourth quarter of 2015 (Q4 2015: €308.6 million).
By contrast, operating profit (EBIT) improved by €13.0 million compared with the previous quarter, reaching €7.3 million. This amount includes a contribution to profits of €5.5 million from a licensing transaction in the Deutz Customised Solutions segment.
Compared with the first quarter of 2015, operating profit fell by €2.8 million. The EBIT margin was 2.4% in the quarter under review.
A company statement said that “overall business performance so far has been in line with expectations”.
Deutz said is stands by its forecast that revenue will stagnate or, at best, rise slightly. Also, the EBIT margin will increase moderately compared with 2015. Market conditions will remain difficult, it noted.
Detailed information on the first three months of this year will be provided in the interim management statement for the first quarter of 2016, to be published on 3 May.
