German engine maker Deutz reports that its financial results reveal a successful level of trading for the first half of 2018. The firm’s preliminary financial results for the first half of 2018 show that the volume of new orders rose by 36.6% compared with the same period in the previous year. New orders hit €1.097 billion compared with €803 million in the first half of 2017. Following the strong start to the year, new orders were also very high at €522 million in the second quarter of 2018, a 30.5% increase on the second quarter of 2017 when new orders were €400 million. Orders on hand rose by €60 million compared with the previous quarter and reached €488 million.
The unit sales figure for the first half of 2018 was 105,201 engines, including 6,345 electric motors sold under the Torqeedo brand. This was 32.2% higher than in the previous year when 79,599 engines were sold. Revenue came to €878 million, a 20% increase over the €735 million for the first half of 2017. In the second quarter of 2018, revenue totalled €463 million, which was 11.6% higher than in the prior-year period and 21.2% more than in the first quarter of this year. Revenue in the first quarter of 2018 reached €415 million. And for the second quarter in 2017, revenue reached €382 million.
Operating profit (EBIT before exceptional items) more than doubled to €48 million compared with the €23 million from the first half of 2017. Second-quarter operating profit was €26 million, a jump of more than 70% compared with the €15 million from same period in the previous year. This also showed an increase of nearly 20% compared to the €22 million of the previous quarter. The EBIT margin (before exceptional items) improved to 5.5% in the first six months after 3.1% in the previous year period. In the second quarter 2018, the EBIT margin was 5.7%, up from 4% in the second quarter 2017 and 5.2% in the previous quarter.
“The start to the new business year has clearly exceeded our expectations,” commented Dr Frank Hiller, chairman of the DEUTZ Board of Management, adding, “The sharp increase of the EBIT margin signals that the measures introduced to improve earnings are showing its effect.”
The full interim report for the first half of 2018 containing the final results including the valuation adjustment of the joint venture DEUTZ Dalian will be published on 2nd August 2018.
