DEUTZ AG / Key word(s): Change in Forecast/Preliminary Results
21.10.2014 08:02
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Cologne, 21 October 2014
Unexpected charges in third quarter of 2014
DEUTZ AG will not meet its previous forecast for the current financial year
(2014). According to new information and analysis, significant costs will
be incurred over the coming years in connection with warranties and
goodwill for engines from the DEUTZ Compact Engines segment, primarily
relating to engines manufactured in 2011. In the third quarter of 2014,
there was an unexpected charge against earnings of EUR20.4 million
resulting from the recognition of provisions for warranty costs, net of
limited insurance claims. We are currently examining whether we have any
further insurance claims.
Preliminary results indicate that new orders in the third quarter of 2014
stood at EUR330.0 million (Q3 2013: EUR360.1 million) while revenue
amounted to EUR424.6 million (Q3 2013: EUR381.0 million, a year-on-year
increase of 11.4 per cent). Excluding the unexpected charge against
earnings, operating profit (EBIT) amounted to EUR23.1 million (Q3 2013:
EUR17.1 million, a year-on-year increase of 35.1 per cent) and the EBIT
margin was 5.4 per cent (Q3 2013: 4.5 per cent). After taking the
recognition of provisions into account, there was an operating profit
(EBIT) of EUR2.7 million and the EBIT margin was 0.6 per cent.
In the DEUTZ Compact Engines segment, new orders in the third quarter of
2014 totalled EUR270.4 million (Q3 2013: EUR303.1 million) and revenue
stood at EUR368.3 million (Q3 2013: EUR315.1 million). The EBIT margin,
excluding the unexpected charges (that affect exclusively this segment),
was 5.3 per cent (Q3 2013: 2.3 per cent). After taking the recognition of
provisions into account, the EBIT margin came to -0.2 per cent. In the
DEUTZ Customised Solutions segment, new orders stood at EUR59.6 million (Q3
2013: EUR57.0 million) while revenue totalled EUR56.3 million (Q3 2013:
EUR65.9 million) and the EBIT margin was 7.5 per cent (Q3 2013: 14.9 per
cent).
As a result of the general economic slowdown, new orders for the third
quarter of 2014 fell below our expectations. Against this background, we
expect to generate revenue of around EUR1.5 billion in the current
financial year. This represents an increase of around 3 per cent compared
with 2013. We will not be able to achieve our previous forecast for
operating profit (EBIT), primarily as a result of the unexpected charges. A
new earnings outlook and more detailed disclosures regarding the third
quarter of 2014 will be provided when the full quarterly report is
published on 6 November 2014.
Christian Krupp
Head of Finance & Investor Relations
Phone: +49 (0) 221 822 5400
Fax: +49 (0) 221 822-155400
E-Mail: krupp.c@deutz.com
21.10.2014 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: DEUTZ AG
OttostraÃe 1
51149 Köln (Porz-Eil)
Germany
Phone: +49 (0)221 822 0
Fax: +49 (0)221 822 3525
E-mail: ir@deutz.com
Internet: www.deutz.com
ISIN: DE0006305006
WKN: 630500
Indices: SDAX
Listed: Regulierter Markt in Düsseldorf, Frankfurt (Prime Standard);
Freiverkehr in Berlin, Hamburg, Hannover, München, Stuttgart
End of Announcement DGAP News-Service
---------------------------------------------------------------------------
DGAP-Adhoc: DEUTZ AG: Unexpected charges in third quarter of 2014
| Source: EQS Group AG