Deutz has published its latest financial figures, showing an increase in operating profit of almost 5m (US$5.39m).
The engine manufacturer’s consolidated financial results for 2016 also revealed that new orders rose by 2.9% to 1.26bn (US$1.36bn), compared with the previous 12 months.
Construction equipment, material handling and agricultural machinery segments all saw increased new orders.
As well as seeing operating profit rise from 18.5m (US$19.9m) to 23.4m (US$25.2m) last year, the company’s net income also increased to 16m (US$17.3m), resulting in earnings per share of 0.14 (US$0.15) compared with 0.04 (US$0.04) in 2015.
The Board of Management and Supervisory Board will propose to the Annual General Meeting that an unchanged dividend of 0.07 (US$0.08) per share be paid.
Deutz CFO Dr Margarete Haase said, “We have seen earnings improve on the back of lower material costs and depreciation and amortisation. We have also benefited from the first positive effects of optimizing our site network in 2016.
“These measures are well advanced and will deliver a positive contribution to earnings of around 10m (US$10.8M) in 2017 and an even higher contribution in future years as capacity utilization rises.”
Despite the positive results, the number of engines sold in 2016 dropped by 3.8% to 132,539, with the stationary equipment and automotive segments being particularly affected.
Broken down by region, revenue was up 3.3% in the Europe, Middle East and Africa region and 15.9% in the Asia-Pacific, but was down 13% in the Americas.
Dr Frank Hiller, member of the Board of Management and Deutz chairman with effect from January 1, 2017, said, “We want to work together with our customers in stable, long-term partnerships and offer them assured and innovative technologies.
“Our objective is to further strengthen our market position and our commercial success and thus make ourselves more attractive to our customers and the capital markets.
“Although we anticipate that the market will stagnate in 2017, or perhaps grow slightly, we can already see early signs of a potential improvement in the market. A strong base effect has resulted from customers in Europe coming to the end of their inventories. Consequently, the company forecasts a marked increase in revenue.”
March 24, 2017
