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.
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- 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.
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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
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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
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DGAP-Adhoc: DEUTZ AG:DEUTZ revises outlook for 2008 to reflect rapidly changing global market conditions
| Source: EQS Group AG