In 2019, we expect to see a further increase in the EBIT margin before exceptional items to ≥ 5.0 per cent. The improvement to the EBIT margin before exceptional items will be mainly due to the expected further rise in revenue, but also to the various initiatives designed to boost efficiency. These include the ongoing optimisation of our product portfolio, the supply chain and production. The continued expansion of the service business will also help to improve overall profitability relative to 2018. Conversely, collectively agreed pay increases and higher commodity prices will squeeze earnings. We believe the improvement in earnings will come mainly from the DEUTZ Compact Engines segment, whereas operating profit in the DCS and Other segments will be on a par with 2018 or slightly higher.
The final instalment of the purchase consideration from the disposal of the Cologne-Deutz site could provide a positive exceptional item. After the development plan for the site has been approved, we will receivable a variable payment in the region of around €50 million. The amount and timing of this payment depends on this approval and is therefore not yet certain. From a current perspective, we assume that the payment will be made in 2019.
As a result of the anticipated increase in operating profit, we believe that the return on capital employed (ROCE) before exceptional items will see a further improvement in 2019.