German engine manufacturing giant Deutz saw the worth of its new orders fall 16.4% in 2012 to €1.237.1 billion, compared to 2011 new orders worth €1.479.3 billion. The Cologne-based firm sold almost 179,000 engines in 2012 - 22.5% fewer than in the previous year. The Deutz Group's revenue decreased by 15.5% to €1.291.9 billion in 2012. Average revenue per engine increased owing to the greater proportion of higher-value engines. Deutz said the difficult economic climate in Europe and a weakening capital equi
German engine manufacturing giant 201 Deutz saw the worth of its new orders fall 16.4% in 2012 to €1.237.1 billion (US$1.549.6 billion), compared to 2011 new orders worth €1.479.3 billion ($1.912.7 billion).
The Cologne-based firm sold almost 179,000 engines in 2012 - 22.5% fewer than in the previous year. The Deutz Group's revenue decreased by 15.5% to €1.291.9 billion in 2012. Average revenue per engine increased owing to the greater proportion of higher-value engines.
Deutz said the difficult economic climate in Europe and a weakening capital equipment sector in China meant it was unable to repeat its record performance in 2011, which had been one of the best years in the Company's history.
Further figures published by Deutz show its operating profit (EBIT) declined year on year by 57.8% to €38.5 million in 2012 (2011: €91.2 million). The company’s EBIT margin decreased from 60% in 2011 to 3% last year. Besides the smaller volume of business resulting from the weak economy and negative contributions to earnings from the joint ventures, Deutz said this trend was largely attributable to set-up costs for growth projects and for the production start-up of new engines, as well as higher depreciation and amortisation charges. Net income fell from €75.5 million in 2011 to €21million in 2012.
On a more positive note, Deutz increased its free cash flow to €12.6 million (2011: €4.8 million) and further strengthened its balance sheet, with net financial debt declining by around €20 million to below €50 million. The equity ratio was 46.8% as at the reporting date.
Additionally, in Q4 2012, Deutz generated a sharp rise in new orders and revenue compared with the previous quarter. New orders advanced by 6.6% to €276.6 million. Revenue amounted to €322.5 million, up 11.8% on the third quarter of 2012. Operating profit (EBIT) in Q4 rose to €13.9 million (Q3 2012: €3 million).
Following a subdued start to 2013, the Company says it expects the market to increasingly pick up worldwide over the course of the year. Deutz predicts revenue of more than €1.4 billion and a moderate year-on-year improvement of the EBIT margin in 2013.
"We succeeded in implementing some major strategic decisions in 2012, even though business conditions were tough. We laid the foundations for profitable growth by continuing with our product offensive and stepping up our activities in China," said Dr Helmut Leube, chairman of the Board of Management of Deutz.
The Cologne-based firm sold almost 179,000 engines in 2012 - 22.5% fewer than in the previous year. The Deutz Group's revenue decreased by 15.5% to €1.291.9 billion in 2012. Average revenue per engine increased owing to the greater proportion of higher-value engines.
Deutz said the difficult economic climate in Europe and a weakening capital equipment sector in China meant it was unable to repeat its record performance in 2011, which had been one of the best years in the Company's history.
Further figures published by Deutz show its operating profit (EBIT) declined year on year by 57.8% to €38.5 million in 2012 (2011: €91.2 million). The company’s EBIT margin decreased from 60% in 2011 to 3% last year. Besides the smaller volume of business resulting from the weak economy and negative contributions to earnings from the joint ventures, Deutz said this trend was largely attributable to set-up costs for growth projects and for the production start-up of new engines, as well as higher depreciation and amortisation charges. Net income fell from €75.5 million in 2011 to €21million in 2012.
On a more positive note, Deutz increased its free cash flow to €12.6 million (2011: €4.8 million) and further strengthened its balance sheet, with net financial debt declining by around €20 million to below €50 million. The equity ratio was 46.8% as at the reporting date.
Additionally, in Q4 2012, Deutz generated a sharp rise in new orders and revenue compared with the previous quarter. New orders advanced by 6.6% to €276.6 million. Revenue amounted to €322.5 million, up 11.8% on the third quarter of 2012. Operating profit (EBIT) in Q4 rose to €13.9 million (Q3 2012: €3 million).
Following a subdued start to 2013, the Company says it expects the market to increasingly pick up worldwide over the course of the year. Deutz predicts revenue of more than €1.4 billion and a moderate year-on-year improvement of the EBIT margin in 2013.
"We succeeded in implementing some major strategic decisions in 2012, even though business conditions were tough. We laid the foundations for profitable growth by continuing with our product offensive and stepping up our activities in China," said Dr Helmut Leube, chairman of the Board of Management of Deutz.
