Overview of 2017
Significantly better key financials
DEUTZ can look back on a very successful 2017. At €1,556.5 million, new orders were up by 23.4 per cent on the previous year. We sold 161,646 engines and increased our revenue by 17.4 per cent to €1,479.1 million. There was also a sharp rise in operating profit (EBIT before exceptional items), which climbed by €19.0 million to €42.4 million. This underlines the success of the steps that we have taken.
Acquisition of Torqeedo and IML Motori
We completed two major acquisitions in 2017. At the end of September, we acquired Torqeedo GmbH, a systems solution specialist and market leader with many years of experience in electromobility for marine applications. It forms the nucleus of our E-DEUTZ strategy. And having acquired our long-standing sales and service partner IML Motori S.r.l. on 1 October 2017, we are also strengthening our high-margin service business. This acquisition brings us closer to our customers around the Mediterranean.
Steps to increase efficiency successfully completed
We completed the comprehensive programme of optimisation at our sites in Germany during the year under review. The transfer of crankshaft and camshaft production from Cologne-Deutz to the new shaft centre in Cologne-Porz was finished in February 2017. The relocation of all functions from Übersee on Lake Chiemsee to Ulm was also completed. These steps are enabling us to make substantial efficiency gains every year, thanks in no small part to the new shaft centre and the relocation of Xchange assembly to Ulm.
Cologne-Deutz site sold
Following the transfer of the Cologne-Deutz plant to Cologne-Porz, the land was sold to a project developer in May 2017. The site, which occupies an area of approximately 160,000 square metres, is to be redeveloped in the coming years to create a new city district with a high proportion of housing. DEUTZ received a sum of around €125 million as purchase consideration for the sale in 2017. We are also expecting a further, final instalment of the purchase consideration in the coming years that will be in the mid-double-digit million euros.
Expansion of the product range
Our objective is to position DEUTZ as the market leader for innovative drive systems. To this end, we are mainly investing in product innovation, aftersales support and internationalisation. We intend to broaden our diesel engine portfolio in the upper power output range as part of a collaborative partnership entered into last year. As a result, four new heavy-duty engines with a cubic capacity in the range of 9.0 to 18.0 litres will be available for our customers from 2019. Moreover, DEUTZ was the first engine manufacturer in the world to be awarded a certificate for the EU Stage V emissions directive, which will apply from 2019. This gives our customers a high level of flexibility and a reliable basis for their planning.
New Chief Financial Officer
Dr Andreas Strecker was appointed as a member of the DEUTZ AG Board of Management with effect from 1 March 2018. From 1 April 2018, he will assume responsibility for Finance, HR, Purchasing and Information Services. Dr Strecker takes over the role of Chief Financial Officer from Dr Margarete Haase, whose contract ends on 30 April 2018.