Business performance in the DEUTZ Customised Solutions (DCS) segment

Slightly more new orders than in 2016

In the year under review, the DEUTZ Customised Solutions (DCS) segment received new orders worth €261.3 million, which was 4.6 per cent up on 2016 when orders worth €249.8 million were received. All application segments except Automotive and Material Handling saw rises. As at the end of 2017, orders on hand stood at €59.7 million, an increase of 31.2 per cent on the figure reported a year earlier.

Slightly fewer engines sold

Unit sales in the DCS segment declined by 6.6 per cent to 8,740 engines in 2017. Whereas the Americas and Asia-Pacific regions registered an increase, engine sales fell in the EMEA region.

Smaller drop in revenue than in unit sales

In the reporting period, the DCS segment’s revenue fell by 4.4 per cent to €247.9 million. In the EMEA region, revenue was on a par with the prior year. Revenue rose by 3.8 per cent in the Americas region but decreased by 17.5 per cent in the Asia-Pacific region, partly due to the recognition of licensing income in 2016. The situation in the application segments was very mixed. The Construction Equipment application segment saw strong growth of 22.8 per cent. Revenue from the service business increased by 2.8 per cent, while Material Handling’s revenue was on a par with the previous year. By contrast, the Automotive and Stationary Equipment application segments reported decreases of 27.8 per cent and 3.8 per cent respectively.

Weaker fourth quarter except in terms of unit sales

In the fourth quarter of 2017, new orders in the DCS segment totalled €56.8 million, down by 2.4 per cent year on year and down by 10.0 per cent on the previous quarter. The 2,408 engines sold in the final quarter exceeded the corresponding figure for the fourth quarter of 2016 by 7.9 per cent. Unit sales were also up by 8.7 per cent compared with the third quarter of 2017. The revenue attributable to the DCS segment in the final quarter amounted to €62.3 million and was down by 2.0 cent year on year and by 3.7 per cent compared with the previous quarter.

DEUTZ Customised Solutions: Revenue by application segment

P044_Chart: DEUTZ Customised Solutions: Revenue by application segment

Lower operating profit for DCS than in 2016

The operating profit of the DEUTZ Customised Solutions segment for the reporting year was €24.5 million (2016: €32.7 million). This fall of €8.2 million primarily resulted from the prior-year period having been boosted by a contribution to profits of €5.5 million from a licensing transaction but also because of the contraction in the volume of business in the reporting year.