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

  • STRABAG reports satisfactory financial performance
    February 22, 2016
    Construction firm STRABAG says that its performance in the 2015 financial year was ‘satisfactory’ and that its outlook for 2016 is positive. “We closed an overall satisfactory year in 2015 with a higher output volume on nearly unchanged employee levels and a lower order backlog. In 2016 we want to maintain the output volume at its high level and raise our EBIT margin to 3%. Thanks to our improved risk management and cost reductions, we are confident that we will reach this goal after having also succeeded i
    Read More
  • Volvo Group opens SDLG excavator factory in Brazil
    August 9, 2013
    Production has started in Brazil of excavators from Shandong Lingong Construction Machinery (Lingong). The SDLG-branded machines will be built in a US$10 million purpose-built assembly hall within the Volvo Group site in Pederneiras, São Paulo state. Initially, four SDLG crawler excavator models will be produced at the new facility – the LG6150E, LG6210E, LG6225E and LG6250E models, covering weight classes from 13.8tonnes to 24.3tonnes. The excavators will be sold to companies working in a variety of indust
    Read More
  • Booming Chinese aggregate demand
    February 22, 2013
    Global demand for construction aggregates is set to increase 5.2% a year until 2015 to 48.3 billion tonnes, according to research by The Freedonia Group in the United States. The same source tips China alone to account for half of all new aggregate demand worldwide in the period 2010-2015. Guy Woodford reports on the growing importance of the Asian aggregates market. China is already the biggest nation for aggregate production and use in the world, and the competition among the giants of aggregate productio
    Read More
  • Breedon posts £200mn-plus revenue rise in 2018
    March 6, 2019
    Breedon, a leading UK and Ireland construction materials group, saw its year-on-year revenue rise by more than £200 million in 2018. Newly published audited figures for the year showed group revenue rose 32% to £862.7 million, compared to £652.4mn in 2017. Breedon’s profit before tax also rose by a healthy 12% to £79.9 million, up from £71.2mn in 2017. Group net debt stood at £310.7mn as of 31 December 2018, up from £109.8mn at 2017 end. Breedon posted a sizeable increase in its aggreg
    Read More

Highlighted Content