DEUTZ AG has had a strong start to 2010 and reported positive first quarter results. The volume of new orders has risen sharply. With new orders amounting to €312.0 million, demand is about 50 per cent higher than it was in the first quarter of 2009 (€205.9 million). Moreover, new orders have risen by more than a third since the fourth quarter of 2009 (€230.5 million) and, for the third quarter in a row, are above revenue. This confirms the positive trend that emerged at the end of 2009. But it is not only demand that has risen. As at 31 March 2010, unit sales had increased to 33,784 engines, approximately 10 per cent higher than at the end of the first quarter of 2009 (30,589 engines). Revenue growth was also encouraging in the first quarter of 2010. For the first three months, revenue totalled €236.4 million, a 7 per cent increase on the first quarter of 2009 (€220.6 million).
However, the clearest indicator of an upturn in business is the return to operating profit. For the first time since the crisis began in the second half of 2008, DEUTZ achieved a small operating profit (EBIT before one-off items) of €0.7 million even though the first quarter tends to be the weakest due to seasonal factors. This significant improvement is a result of the positive unit sales and revenue figures and, above all, the MOVE action programme, which has permanently lowered fixed costs. In the corresponding period last year, DEUTZ had recorded a loss of €19.9 million. After one-off items of €1.7 million, the Company made an operating loss (EBIT) of €1.0 million in the first quarter of 2010.
The outlook for 2010 is therefore positive. "We are optimistic about 2010 as a whole. We anticipate that new orders, unit sales and revenue will all be significantly higher than in 2009. If the economy continues to grow, we expect to achieve positive EBIT and a clear rise in the number of engines sold", said Dr Helmut Leube, Chairman of the Board of Management of DEUTZ AG.
For detailed information about the first quarter of 2010, see the summary of key performance indicators.
If you need further information please contact:
Investor Relations
Maria Babilas
Tel.: +49 (0)221 822-5400
Fax: +49 (0)221 822-15-5400
E-Mail: babilas.m@deutz.com
Public Relations
Georg Diderich
Tel.: +49 (0)221 822-2200
Fax: +49 (0)221 822-15-2200
E-Mail: diderich.g@deutz.com
