- Business performance in line with expectations during the first three months
- Revenue down slightly on the previous quarter
- Strong improvement in operating profit compared with the fourth quarter of 2015
DEUTZ AG has today published the Group's preliminary financial results for the first quarter of 2016. New orders totalled €327.3 million, which was up by 2.0 per cent on the first quarter of last year (Q1 2015: €321.0 million) and up by 11.7 per cent on the previous quarter (Q4 2015: €293.0 million). At 32,112 engines, unit sales were 13.0 per cent lower than they had been a year earlier (Q1 2015: 36,907 engines) but rose by 5.1 per cent compared with the previous quarter (Q4 2015: 30,545 engines). Revenue amounted to €300.2 million, which was down by 5.6 per cent year on year (Q1 2015: €318.1 million) and down by 2.7 per cent on the fourth quarter of 2015 (Q4 2015: €308.6 million).
By contrast, operating profit (EBIT) improved by €13.0 million compared with the previous quarter, reaching €7.3 million. This amount includes a contribution to profits of €5.5 million from a licensing transaction in the DEUTZ Customised Solutions segment. Compared with the first quarter of 2015, operating profit fell by €2.8 million. The EBIT margin was 2.4 per cent in the quarter under review. Overall, therefore, business performance so far has been in line with expectations.
For 2016 as a whole, DEUTZ confirms its forecast that revenue will stagnate or, at best, rise slightly and that the EBIT margin will increase moderately compared with 2015. The Company believes that market conditions will remain difficult.
Detailed information on the first three months of this year will be provided in the interim management statement for the first quarter of 2016, to be published on 3 May 2016.
For further information on this DEUTZ AG press release, please contact:
Investor & Public Relations
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