Business performance in the DEUTZ Compact Engines (DCE) segment

New orders up significantly on the prior year

In 2018, the DEUTZ Compact Engines (DCE) segment received new orders worth €1,638.2 million, which was 27.0 per cent up on 2017 when orders worth €1,290.4 million were received. All application segments saw rises. Orders on hand amounted to €360.4 million at the end of the year, up by 72.4 per cent compared with the end of 2017.

Sharp increase in unit sales

The DCE segment’s unit sales rose by 28.7 per cent to reach 195,259 engines, compared with 151,671 engines in 2017. In EMEA, our largest market, we sold 134,707 engines, which was 27.8 per cent more than in the prior year. Unit sales climbed by 30.7 per cent in the Americas region and by 31.0 per cent in the Asia-Pacific region. All application segments except Automotive registered an increase in unit sales. Unit sales in the Automotive application segment were on a par with the prior year.

High revenue growth

At €1,484.0 million, revenue in the DCE segment was up by 20.9 per cent year on year (2017: €1,227.5 million). The EMEA region’s revenue advanced by 20.0 per cent to €1,093.6 million. Revenue also rose in the Americas region, by 23.8 per cent to €279.1 million, and in the Asia-Pacific region, by 23.6 per cent to €111.3 million. The strongest increases among the application segments were recorded by Material Handling (up by 41.9 per cent) and Construction Equipment (up by 25.8 per cent). Revenue growth was also reported for Agricultural Machinery (up by 12.9 per cent), Stationary Equipment (up by 9.3 per cent), the service business (up by 4.5 per cent) and the Automotive application segment (up by 1.1 per cent).

Good final quarter

New orders in the DCE segment reached €326.0 million in the fourth quarter of 2018. This was 1.5 per cent higher than in the corresponding quarter of the prior year. Unit sales amounted to 54,225 engines, which was up by 36.5 per cent year on year and by 16.4 per cent on the previous quarter. Revenue for the final quarter of 2018 came to €398.8 million, an increase of 24.7 per cent compared with the fourth quarter of 2017.

DEUTZ Compact Engines: Revenue by application segment

DEUTZ-Compact_Engines_Revenue_by_application_segment € million (2017 figures) 255.3 (226.2)Agricultural Machinery 361.2 (254.6)Material Handling 27.1 (26.8)Automotive 132.9 (121.6)Stationary Equipment 512.1 (407.2)Construction Equipment 194.3 (186.0)Service 1.1 (5.1)Miscellaneous 1,484.0(1,227.5)

DEUTZ Compact Engines

  2018 2017 1) Change (%)
New orders (€ million) 1,638.2 1,290.4 27.0
Unit sales (units) 195,259 151,671 28.7
Revenue (€ million) 1,484.0 1,227.5 20.9
EBIT (€ million) 1) 63,2 19.8 219,2
EBIT margin (%) 4.3 1.6
1) Adjusted as a result of the write-downs on the DEUTZ Dalian joint venture.

DCE's operating profit triples

Operating profit (EBIT before exceptional items) in the DEUTZ Compact Engines segment improved by a substantial €43.8 million to €64.2 million despite the negative impact of strike action at our supplier Neue Halberg-Guss GmbH. This sharp increase was mainly due to the higher volume of business and associated economies of scale as well as efficiency gains.