DGAP-News

DEUTZ AG: DEUTZ generates further growth in first quarter of 2022 - Seite 2

Marked rise in new orders; double-digit increases in unit sales and revenue
In the first quarter of 2022, new orders received by DEUTZ increased by 9.6 percent year on year to €509.6 million. All regions contributed to this growth.

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^[1] 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 before exceptional items (adjusted EBIT) improved significantly to €15.8 million in the first quarter of 2022, compared with €0.8 million in the prior-year period. This rise was mainly attributable to growth in the volume of business, economies of scale, and the effects of cost-saving measures. Higher research and development expenditure and increased procurement costs were more than offset by the positive impact of the revenue growth. Moreover, it is becoming increasingly possible to gradually pass on rising costs for raw materials and logistics to customers. However, the Group’s adjusted EBIT was once again squeezed by the loss reported by DEUTZ subsidiary Torqeedo, which has not yet managed to break even. The EBIT margin before exceptional items also made a strong year-on-year improvement, rising from 0.2 percent to 3.5 percent.