Deutz sees Asian market as key to company success

Deutz is set to increase its presence in Asia in a bid to achieve greater overall company growth despite the ongoing tough global economic climate. The German diesel engine manufacturer says its plans to create a joint venture in China with Volvo are “making headway”. The firm also says its recently established joint venture with Shandong Changlin Machinery Group in Linyi, in the eastern Chinese province of Shandong, is “rapidly gaining momentum”.
August 13, 2012 Read time: 2 mins
201 Deutz is set to increase its presence in Asia in a bid to achieve greater overall company growth despite the ongoing tough global economic climate.

The German diesel engine manufacturer says its plans to create a joint venture in China with 2394 Volvo are “making headway”. The firm also says its recently established joint venture with Shandong 2716 Changlin Machinery Group in Linyi, in the eastern Chinese province of Shandong, is “rapidly gaining momentum”.

Deutz believes its commercial success in 2012 will be affected by weaker customer demand due to the slowdown of the world’s economy. The firm sold 93,853 engines in the first six months of 2012, down 12.4% on the same period of last year. At €344.1 million, Deutz Q2 2012 revenue rose slightly compared to the €336.9 million achieved in Q1 2012. Meanwhile, operating profit came to €11.3 million in Q2 2012, which was €1 million higher than in the first three months of the year. The second-quarter earnings were said by Deutz to be reduced by around €5 million owing to “one-off items” in connection with the replacement of the company's previous funding facility, as well as impairment losses and higher start-up costs of joint ventures.

Speaking about the company’s Asian expansion plans and performance targets, Dr Helmut Leube, chairman of Deutz’s management board, said: “In the first half of 2012 we were unable to build on our impressive start to the year. This was largely due to the macroeconomic situation, which is still afflicted by considerable uncertainty. Nonetheless, we are confident that Deutz is well positioned for the future and will continue to grow profitably over the medium to long term. Our new joint venture in Shandong is rapidly gaining momentum and should soon enable us to achieve our ambitious goals in Asia. Our plans to set up a joint venture in China with Volvo are also making good headway. In addition, we have opened new service centres in Moscow and Madrid in order to expand our service-related business."

For more information on companies in this article

Related Content

  • Deutz's power presence
    August 16, 2018
    Deutz is developing its presence in the Middle East market for engines and gensets The firm is now offering complete gensets with outputs from 13-1,250kVA. Other technologies now available include units with hybrid operation that are said to deliver fuel savings of up to 65%. The firm claims that its high-performance DEUTZ POWER SOLUTIONS (DPS) series includes both air-cooled and liquid-cooled variants, with the standard package including integral fuel tanks, detailed monitoring functions and visual warn
    Read More
  • Russia one of Europe “growth engines” for construction equipment
    June 4, 2013
    Russia is one of the “growth engines” for the European construction equipment industry, says Ralf Wezel, secretary general of CECE, the European Construction Equipment Association. According to the CECE, one out of three tower cranes produced and sold in Europe are currently going to Russia. The Association says that Russian governmental and private projects in the oil and gas industry and in the infrastructure and housing sectors are stimulating demand, with building hoists, truck mixers, concrete batching
    Read More
  • Bauer records high group revenue growth for Q3 at 22%
    November 15, 2017
    Bauer, equipment maker for ground investigation work, reports third quarter 2017 total group revenue up 22% on the previous year to just over €1,398 million. The German company said sales revenues increased by 27.5% to €1,265.6 million. However, the order backlog was €977.3 million that, while still high, was down from €1,019.0 million the previous year. This was due to a high double-digit million order backlog taken off the books after the sale of shares in a real estate company at the end of 2016.
    Read More
  • Volvo CE’s upbeat market view
    April 4, 2014
    Volvo Construction Equipment is posting optimistic financial results that show an increase in deliveries in the fourth quarter of 2013. The firm reports deliveries climbing by 9% as global markets show signs of improvement. A slowly recovering global market helped Volvo Construction Equipment round off 2013 with sales up 3% in the fourth quarter and improved market share, especially in compact equipment.
    Read More

Highlighted Content