in first half of year, but strikes a note of caution. DEUTZ AG, manufacturers of diesel and gas engines, boosted its global revenue and unit sales in the first six months of 2008, compared to the same period last year.
Sales rose by 15 per cent to E825.5 million, up from E717.7 million in the first six months of 2007, as a result of a strong performance in Europe and continued growth in Asia. Unit sales were up 10.5 per cent to 148,687, from 134,619 in the first six months of 2007.
The value of new orders in the first half of the year remained high at E829.1 million, down slightly from E834.4 million in 2007. Although the level of new orders slowed down in the second quarter of the year, as a result of the deteriorating economic outlook, the company's service business performed well, growing by around 10 per cent.
Sales of compact engines were up by 10.5 per cent in the first six months of 2008 to 132,123 units, helped by a 17 per cent growth of four- to eight-litre engines. Sales in the customised solutions area were up by 9.7 per cent.
Dr. Helmut Leube, the new Chairman of the DEUTZ AG Management Board, said: “On the whole we can look back on an encouraging first half of 2008 in which we continued to raise our revenue and unit sales despite growing signs of an economic slowdown.”
Given the prevailing economic conditions and the less upbeat outlook of its customers, DEUTZ expects unit sales for the whole of 2008 to remain in line with last year's high figure.
The company has recently announced a reorganisation of the Management Board functions. “DEUTZ is on the right track, and we are clear about our strategic objectives,” said Dr. Leube. “With the reorganisation of areas of responsibility, we are adapting to the immediate and future challenges faced by DEUTZ AG, and at the same time accelerating our processes”, he concluded.
Alan Beech, the recently appointed Operations Director for the Cannock, Staffordshire, based DEUTZ AG – UK Branch confirmed that by building on its improved product mix, DEUTZ aims to generate worldwide revenue growth of around five per cent in 2008.
DEUTZ is one of the world's leading independent manufacturers of diesel and gas engines. It has an overall product range extending from 9kW to 500kW, with models suitable for a wide variety of markets and applications, including the construction, quarrying, mining, materials handling, agricultural, ground care, industrial and airport ground handling equipment sectors.
The company's engines are widely used by many leading OEMs for excavators, wheeled loaders, access platforms, compactors, cranes, crushers, screeners, compressors, lift trucks, tractors, ride-on mowers, chippers, shredders, gensets and other off-highway mobile plant.
Sales, service and product back-up is available through the DEUTZ UK centrally located Cannock, Staffordshire facility; supported by a dedicated nationwide team of factory trained Service Engineers, equipped with a fleet of mobile workshops, together with a network of specialist appointed local distributors.
The latest copy of the company's magazine, 'DEUTZ LIVE', contains an interview with Dr. Helmut Leube about the company's plans for the future.