- Year-to-date business performance in line with expectations
- Revenue slightly down on Q4 2015
- Significant improvement in operating profit compared with previous quarter
Having announced preliminary results on 21 April 2016, DEUTZ AG published its interim management statement for the first quarter of 2016 today. The new orders received by the DEUTZ Group during the reporting period totalled €327.3 million, which was up by 2.0 per cent on the first quarter of last year (Q1 2015: €321.0 million) and up by 11.7 per cent on the previous quarter (Q4 2015: €293.0 million). At 32,112 engines, unit sales were 13.0 per cent lower than they had been a year earlier (Q1 2015: 36,907 engines) but rose by 5.1 per cent compared with the previous quarter (Q4 2015: 30,545 engines). Revenue for the first quarter of 2016 was €300.2 million, which was down by 5.6 per cent year on year (Q1 2015: €318.1 million) and down by 2.7 per cent on the fourth quarter of 2015 (Q4 2015: €308.6 million). This slight weakening is due to the ongoing reluctance to invest on the part of end customers since the autumn of 2015. The strongest decline relative to Q1 2015 was in the Americas region, while the Asia-Pacific region was able to increase revenue. The largest region, EMEA (Europe, Middle East, Africa), saw a slight year-on-year drop in revenue. In terms of application segments, Agricultural Machinery was in positive territory but all other application segments recorded a decline in revenue and the service business was unchanged on the corresponding period of the previous year.
Operating profit (EBIT) improved by €13.0 million compared with the previous quarter, reaching €7.3 million. This amount includes a contribution to profits of €5.5 million from a licensing transaction in the DEUTZ Customised Solutions segment. Compared with the first quarter of 2015, operating profit fell by €2.8 million. The EBIT margin was 2.4 per cent in the quarter under review. Net income was €8.7 million, representing an improvement of €1.0 million on the corresponding prior-year period (Q1 2015: €7.7 million) and an improvement of €12.5 million on the previous quarter (Q4 2015: net loss of €3.8 million) thanks to positive tax effects. This produced earnings per share of €0.08 (Q1 2015: €0.07; Q4 2015: minus €0.03). "Our year-to-date business performance has been in line with our expectations," noted Chairman of the Board of Management Dr Helmut Leube. "DEUTZ is very well positioned to increase its revenue and earnings significantly when market conditions improve."
The Company is nevertheless preparing itself for difficult market conditions in 2016. DEUTZ is reiterating its forecast that revenue will stagnate or, at best, rise slightly and that the EBIT margin will increase moderately compared with 2015. Our focus during the current year will be on improving efficiency, lowering the break-even threshold and increasing our flexibility, commented Chief Financial Officer Dr Margarete Haase. "We are already well on track with this, as demonstrated by the results that have been announced for the first quarter of 2016."
Detailed information on the first quarter of 2016 can be found in the enclosed summary of key performance indicators.
For further information on this DEUTZ AG press release, please contact:
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