Deutz has reported an increase in revenue for the first half of 2019 of 5.9% compared with the same period last year with particularly strong growth in the Americas (+15.8%) and Asia Pacific (+15.5%).
Revenue at the German engine maker grew to €929.8 million in the first half of 2019. However, the company said that although still at a high level, new orders were 13.1 % lower than the “exceptionally robust volume reported for the prior-year period, which had been positively influenced by a change in customers’ ordering patterns.”
It added that in addition to this year-on-year effect, “a weakening of demand as a result of the economic climate had an adverse impact at the end of the reporting period, with new orders in the second quarter decreasing by 15.9% year on year to €438.8 million.
In the Americas region, Deutz said it particularly benefited from the general recovery in the market and from higher demand for new engine series. Factors in the substantial increase in revenue generated in the Asia-Pacific region included business with new customers as well as revenue growth in China and other Asian countries.
Deutz chief executive officer Dr. Frank Hiller said the company is well positioned to weather the economic challenges that lie ahead.
He added:“We are open to embrace new technologies and offer our customers a range of products tailored to their individual needs. The ongoing expansion of our high-margin service business is succeeding, and the initiatives that we have introduced to reap further efficiency gains are bearing fruit. Good progress is also being made with the internationalization of our business.
“We reached an important milestone in our China strategy by signing an agreement to form a joint venture with Sany. All this means that Deutz has a solid foundation on which to continue operating successfully even in an increasingly challenging economic climate.”