Unit sales, revenue
DEUTZ’s engine business will benefit from the robust global economy and positive unit sales trends in key application segments. The start of 2018 has been characterised by a significantly better level of orders on hand and strong momentum in terms of new orders. We expect our European customers to bring forward their spending this year ahead of the switch to the new emissions standard in the European Union on 1 January 2019 (EU Stage V). This is likely to have a positive influence on our unit sales in the current year, which we predict will rise by a low five-digit number of engines. Consequently, a tailing off of new orders at the end of 2018 is realistic. However, many new customer projects will get under way in 2019 due to the introduction of the new emissions standard.
We believe the service business’s revenue will continue to go up thanks to various service initiatives and the integration of the service business in Italy.
We therefore anticipate a marked rise in revenue overall. The increase in revenue will be fuelled by the DCE segment, whereas we expect the DCS segment’s revenue to hold steady. From a low base, revenue in the Other segment, in which Torqeedo has been included since the fourth quarter of 2017, will increase significantly.
Our forecasts are of course subject to great uncertainty. The flexibility of our business and a competitive cost structure therefore remain key factors in our competitiveness.