Engine manufacturer is becoming more optimistic: Deutz expects more sales and increases forecast

A high demand agrees Engine manufacturer DeutzMore optimistic for 2021. Between 155,000 and 170,000 engines could be sold in the year as a whole, said Deutz. So far, the management had assumed 155,000 units at best. Sales should therefore reach 1.6 to 1.7 billion euros – each 100 million euros more than previously targeted. The proportionate service turnover should remain unchanged at around 400 million euros.

The news on Tuesday was well received at the stock exchange. Shortly after the start of trading, the Deutz share rose by 5.83 percent to 8.175 euros, making it the front runner in the SDax small-cap index. It has gained around 60 percent in value since the beginning of the year.

Deutz now expects the operating return on earnings before special items (EBIT return) this year to be 2.0 to 3.0 percent, one percentage point more than before. The forecasts are subject to the proviso that there will not be a significant deterioration in the continued tense supply of components in the next few months.

On the way out of the crisis

In addition, the engine manufacturer is now assuming a balanced free flow of funds. So far, the board had expected an outflow. Deutz plans to publish the complete figures for the first nine months of the year on November 10th.

In August, the management had only confirmed the previous annual forecasts, although the group had a high order backlog. Like other companies, Deutz is affected by supply chain problems. However, the company has been on the way out of the crisis again since this year: In 2020, the Klner Group had suffered severely from the consequences of the Corona crisis and posted deep red figures. The management then initiated an extensive restructuring and savings program including job cuts. (Dpa-AFX / gem)

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Lenny Li

I started to play with tech since middle school. Smart phones, laptops and gadgets are all about my life. Besides, I am also a big fan of Star War. May the force be with you!

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