- WKN: 630500
- ISIN: DE0006305006
- Land: Deutschland
Nachricht vom 05.05.2022 | 07:30
DEUTZ AG: DEUTZ generates further growth in first quarter of 2022
DGAP-News: DEUTZ AG
/ Key word(s): Quarter Results/Miscellaneous
Cologne, May 5, 2022 – DEUTZ, one of the world’s leading manufacturers of innovative drive systems for off-highway applications, can look back on a highly promising start to 2022 despite the outbreak of war in Ukraine.
“With revenue rising by around 30 percent, our adjusted EBIT margin increased by 3.3 percentage points compared with the prior-year quarter to reach 3.5 percent. Now we need to sustain and accelerate this uptrend. We will resolutely implement further measures aimed at boosting our profitability,” says CEO Dr. Sebastian C. Schulte. Turning to the year ahead, he adds: “Our orders on hand climbed to around three-quarters of a billion euros at the end of March. That provides a stable starting position for the coming months. However, the supply situation remains challenging. At the same time, the geopolitical impact of the war in Ukraine creates a lot of uncertainty, including for DEUTZ. Our forecast is therefore still subject to change.”
DEUTZ also made progress from a strategic perspective in the first few months of this year. It has initiated a multi-phase strategy process aimed at increasing its profitability and unlocking potential for growth. The first targets have been defined: revision of the pricing structure for the new engine business, optimization of the engine portfolio, and accelerated expansion of the profitable service business. The aim is to increase service revenue to €500 million by 2025 as a result of organic growth and through acquisitions. Two acquisitions have already taken place: At the start of May, DEUTZ acquired its former service partners AUSMA Motorenrevisie B.V., which is headquartered in Roden, Netherlands, and South Coast Diesels, based in Naas, Ireland. The two companies sell and service diesel engines in their home markets, where they operate as multi-brand dealers. As well as improved market penetration, the acquisitions will enable DEUTZ to expand its service business in these countries to include competitors’ engines.
Marked rise in new orders; double-digit increases in unit sales and revenue
Orders on hand continued to climb, reaching a substantial €746.7 million as at March 31, 2022 (March 31, 2021: €394.3 million). This points to a stable order situation in the months ahead. The proportion of orders on hand attributable to the service business stood at €43.8 million (March 31, 2021: €31.8 million).
With a total of 50,015 units sold, the DEUTZ Group registered an increase in unit sales of 30.3 percent in the first three months of 2022. The number of DEUTZ engines sold rose by 35.1 percent to 43,561. The DEUTZ subsidiary Torqeedo sold 6,454 electric boat drives, which was 5.2 percent more than in the first quarter of 2021. The growth in unit sales was driven by all application segments and by DEUTZ’s two most important sales markets, EMEA and the Americas.
Reflecting the growth in unit sales, DEUTZ’s revenue swelled by 30.4 percent to €447.9 million in the period under review. As was the case for unit sales, all application segments contributed to this increase. From a regional perspective too, the trend was positive across the board.
Strong improvement in profitability
EBIT for the period under review stood at €9.0 million (Q1 2021: €0.4 million). This figure takes account of exceptional items amounting to an expense of €6.8 million that related to the recognition of provisions following several changes at senior management level. The EBIT margin came to 2.0 percent (Q1 2021: 0.1 percent).
Due to the increase in adjusted EBIT, net income improved by €7.7 million to €6.8 million. As a result, earnings per share increased from minus €0.01 to plus €0.06. Net income before exceptional items amounted to €12.5 million; earnings per share before exceptional items came to €0.10.
Financial position remains comfortable; restructuring of the Group’s funding
As a result of drawing down an existing credit line in an amount of €25 million in the first quarter of 2022, net financial debt swelled by €7.0 million to €86.7 million as at March 31, 2022.
The equity ratio stood at 45.0 percent, compared with 45.6 percent at the end of 2021. The DEUTZ Group’s financial position therefore remains very comfortable. As at March 31, 2022, the Company had unutilized credit lines totaling around €185 million at its disposal.
DEUTZ restructured its existing funding at the start of May 2022. This involved increasing the volume of the long-term syndicated loan from €160 million to €250 million and terminating the three existing short-term bilateral credit lines, which had a total volume of €75 million. The new lending arrangements include an ESG component and better overall terms and conditions. The term of the syndicated loan was extended by three years to 2027. DEUTZ has thus once again expanded the financial means at its disposal for investment in its transformation and for growth by acquisition.
Guidance for 2022 still subject to change due to high levels of uncertainty
DEUTZ Group: Overview of key figures
The quarterly statement for the first quarter of 2022 is available on our website at www.deutz.com/en/investor-relations.
Upcoming financial dates
DEUTZ AG / Svenja Deißler / Investor Relations
|51149 Köln (Porz-Eil)|
|Phone:||+49 (0)221 822 0|
|Fax:||+49 (0)221 822 3525|
|Listed:||Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1344081|
|End of News||DGAP News Service|
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