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

  • Construction equipment launched at Bauma China
    February 15, 2012
    The 2010 bauma China event did, as expected, break all previous records, with companies launching more new equipment than ever. Patrick Smith reports. The queues at the entrances on the first day of bauma China 2010 indicated what the rest of the week had in store. As thousands of visitors poured through the gates each day to view the latest in construction equipment at the expanded Shanghai New International Expo Centre, the organisers knew they were looking at another successful event.
    Read More
  • India's first construction event a huge success
    April 5, 2012
    The first bC India event has exceeded all expectations and it is set to become a regular event. Patrick Smith reports A major new construction equipment show has been launched in a nation with a huge appetite for such machinery and a growth rate nudging 9% each year. With billions being spent on infrastructure (roads and highways, power stations, railways, ports and airports), India was a prime candidate for a trade fair to display the latest and local international construction machinery, building materia
    Read More
  • Demand diversity in the construction equipment sector
    June 1, 2015
    Demand within the global construction equipment manufacturing industry is anything but homogenous, with certain countries and sales regions significantly outperforming others, with a whole host of factors fuelling and suppressing each key market - Guy Woodford reports
    Read More
  • Caterpillar reports strong performance for first quarter
    April 28, 2017
    Caterpillar is reporting a strong financial performance for its first quarter results for 2017. The company has revealed higher year-over-year sales and revenues for first time in 10 quarters. The first-quarter sales and revenues were up from 2016, while the firm saw an outstanding operational performance in this period. The full-year sales and revenues outlook meanwhile has been raised to a range of US$38 billion to $41 billion.
    Read More

Highlighted Content