First publishedon www.WorldHighways.com
has announced promising preliminary results for the first quarter of 2017. The firm claims a successful start to the 2017 financial year, with a marked increase in new orders and revenue, as well as an improved operating profit. New orders hit €403.2 million, a 23.2% increase on the first three months of last year when the figure was €327.3 million. In addition, the performance represents a 23.6% gain over the fourth quarter of 2016 when the figure was €326.1 million. At 37,153 engines, unit sales were up by 15.7% on both the prior-year period at 32,112 engines as well as the previous quarter in 2016 at 32,100 engines. Revenue came to €352.5 million, a year-on-year rise of 17.4% for the first quarter of 2016 when the figure was €300.2 million. The performance was also 12% higher than in the fourth quarter of 2016 when the figure was €314.7 million.
At €7.6 million, operating profit was on a par with the first quarter of last year. However, the figure for the prior-year period had been boosted by a contribution of €5.5 million from a licensing transaction in the DEUTZ Customised Solutions segment. Compared with the fourth quarter of 2016, EBIT before exceptional items went up by €3.9 million. The EBIT margin (before exceptional items) was 2.2% in the quarter under review. In the first quarter of 2017, the disposal of a building lease generated a positive exceptional item of €10 million. As a result, there was a marked increase in EBIT after exceptional items, which climbed to €17.6 million. Free cash flow also improved by a substantial €68.6 million to reach €39.7 million.
For 2017 as a whole, DEUTZ is reiterating its forecast of a marked rise in revenue and a moderate increase in the EBIT margin before exceptional items.