Deutz (engines) logs ‘record growth’ in 2018
Deutz (engines) notched up revenues of almost €1.8 billion in 2018. This was over 20% higher than the figure achieved in 2017.
Revenue growth was evident across all main product (engine) segments: agricultural machinery (up 12.9%); materials handling equipment (up 41.9%); and construction equipment (up 25.8%).
Operating profit more than doubled in 2018, going up by €42 million to reach €82 million.
Aside, it’s worth noting that Deutz withdrew from a joint venture with Dalian last year.
“2018 was a very successful year for us,” explained Dr. Frank Hiller (pictured below) – chairman of the board of management of Deutz AG.
“We comfortably exceeded our revenue target and registered a sharp increase in profitability. Our E-Deutz strategy is already bearing fruit and is an important step on our path to becoming a leading global manufacturer of innovative drive systems.
Our new three-pillar growth strategy for China means that we are now also strengthening our position in the world’s biggest engine market.
“For 2019, we expect a further increase in revenue and a further improvement in profitability towards our medium-term target of an EBIT (earnings before interest and taxes) margin before exceptional items of 7-8%.”
In related news, the manufacturer showed off its latest electrified drive system at IVT (Industrial Vehicle Technology) Expo 2019 in Cologne (Germany) last month.
A spokesperson explained: “Our E-Deutz drives [one of which is pictured below] deliver a clear benefit in terms of consumption for off-highway machines, lowering not only overall running costs but also emissions.
“In a typical telescopic handler application, for example, we have already managed to achieve a fuel saving of up to 15% by using a hybrid drive. The additional boost provided by the electric motor also makes the machine much more responsive.”
Using its modular product approach, Deutz says that it will soon offer a range of “fully-scalable drive components”. These could be combustion engines, electric E-Deutz drives or a combination of the two.