DEUTZ AG / Profit Warning/Profit Warning 13.10.2008 Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Fall in unit sales of compact engines under four litres - Fewer new orders of four to eight-litre compact engines, but no year-on-year change in unit sales - Revenue forecast for DEUTZ Customised Solutions and services still higher than 2007 - Cost-cutting drive and optimisation of processes beginning to yield results Having performed well in the first half of this year, unit sales have continued to decline at an ever-faster pace in recent weeks as the financial crisis has unfolded. The market downturn that started in the United States has now spread throughout Europe. We are also beginning to see signs that China's growth is slowing. Contrary to its previous forecasts for 2008, DEUTZ now expects to sell approximately 260,000 engines in total this year based on its latest figures. This means it will fall short of the record it achieved in 2007 (roughly 286,000 engines). The fall in unit sales is primarily attributable to DEUTZ's compact engines with a capacity of less than four litres, which are mainly used in mobile machinery and compressors. Its four to eight-litre engines are expected to achieve roughly the same level of unit sales as last year. In view of these trends, DEUTZ aims to generate revenue growth of up to 2 per cent for 2008. Given its significantly lower revenue forecast for the Compact Engines segment and the sharp rise in its cost of materials, DEUTZ now expects to report an EBIT margin of around 2 per cent. By the Company's cost-cutting drive and the process improvements it has introduced DEUTZ has already achieved earnings improvements by a double-digit million euro amount. It plans to continue its product offensive for compact engines under four litres and to implement its strategy of internationalisation. Despite the international financial crisis and its consequences for the markets in which we operate, DEUTZ is vigorously pursuing the goal of sustainably improving its profitability with the help of the measures that have been introduced as well as additional measures that take account of the current situation. The Company's interim report for the first three quarters of 2008 will be published on 7 November 2008. --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: Further information about DEUTZ AG is available at http://www.deutz.com. Sandra Siegele Head of Investor Relations Tel.: +49 (0)221 822 2492 Fax: +49 (0)221 822 2498 Email: siegele.s@deutz.com DGAP 13.10.2008 --------------------------------------------------------------------------- Language: English Issuer: DEUTZ AG Ottostraße 1 51149 Köln (Porz-Eil) Deutschland Phone: +49 (0)221 822 0 Fax: +49 (0)221 822 3525 E-mail: info@deutz.com Internet: www.deutz.com ISIN: DE0006305006 WKN: 630500 Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard), Düsseldorf; Freiverkehr in Berlin, Hannover, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: DEUTZ AG:DEUTZ revises outlook for 2008 to reflect rapidly changing global market conditions
| Source: EQS Group AG