Business performance in the DEUTZ Customised Solutions (DCS) segment

More orders than in 2017

In the year under review, the DEUTZ Customised Solutions (DCS) segment received new orders worth €286.0 million, which was 9.5 per cent up on 2017 when orders worth €261.3 million were received. All application segments except Automotive and Stationary Equipment saw rises. As at the end of 2018, orders on hand totalled €75.2 million, an increase of 26.0 per cent on the figure reported a year earlier.

More engines sold

Unit sales in the DCS segment rose by 5.9 per cent to 9,259 engines in 2018. The regional analysis showed a mixed picture: whereas the EMEA region registered a modest increase in unit sales, engine sales increased sharply in the Americas and fell in Asia-Pacific.

Faster growth in revenue than in unit sales

In the reporting period, the DCS segment’s revenue rose by 9.4 per cent to €271.2 million. Segment revenue in the EMEA region was up by 12.3 per cent on the prior year. It advanced by 25.3 per cent in the Americas region but declined by 10.6 per cent in the Asia-Pacific region. The breakdown by application segment reveals that revenue rose by 34.9 per cent in Agricultural Machinery, by 10.6 per cent in Construction Equipment, by 9.9 per cent in Stationary Equipment and by 8.2 per cent in Material Handling. The service business also saw its revenue go up, by 10.1 per cent. Revenue attributable to the Automotive application segment was down by 2.7 per cent year on year.

Positive trend in the fourth quarter

In the fourth quarter of 2018, new orders in the DCS segment amounted to €70.7 million, 24.5 per cent higher than in the fourth quarter of 2017. The 2,766 engines sold in the final quarter exceeded the corresponding figure for the fourth quarter of 2017 by 14.9 per cent. The revenue attributable to the DCS segment in the final quarter rose by 27.4 per cent year on year to €79.4 million.

DEUTZ Customised Solutions: Revenue by application segment

DEUTZ-Customised_Solutions_Revenue_by_application_segment € million (2017 figures) 271.2(247.9) 5.8 (4.3)Agricultural Machinery 11.9 (11.0)Material Handling 28.5 (29.3)Automotive 33.4 (30.4)Stationary Equipment 33.4 (30.2)Construction Equipment 135.6 (123.2)Service 22.6 (19.5)Miscellaneous

DEUTZ Customised Solutions

       
  2018 2017 Change (%)
New orders (€ million) 286.0 261.3 9.5
Unit sales (units) 9,259 8,740 5.9
Revenue (€ million) 271.2 247.9 9.4
EBIT (€ million) 31.9 24.5 34.3
EBIT margin (%) 12.1 9.9

Sharp increase in DCS’s operating profit

Operating profit for the DEUTZ Customised Solutions segment also rose sharply on the prior year and at a faster rate than revenue. The biggest factors in this improved performance were the higher volume of business, the increase in the proportion of earnings generated by the high-margin service business and efficiency gains.