Positive Balance After Nine Months
27 October 2005 14:52
- Comparable EBIT plus 49 percent
- Stockholders' equity ratio now 23.3 percent
The third quarter of 2005 has also proven to be more than satisfactory for the Cologne engine company DEUTZ. With over 145,000 engines sold, a new record was set for the first nine months. Judged against last year's comparable figures, sales have risen significantly - by 9 % to almost 936 million Euro. The adjusted operating profit (EBIT) is also clearly up, by 49%. DEUTZ achieved earnings after tax of 61 million Euro as of 30 September this year.
The progress that has been made in the DEUTZ Power Systems segment is particularly pleasing. Sales of gas engines for decentralised power systems were up by 50 percent, enabling the segment to contribute 226 million Euro to total sales. The positive trend in compact engines during the first six months has continued during the third quarter. In the power range of up to 500 kW, DEUTZ sold 144,535 engines - ten percent more than last year. Gordon Riske, the Chairman of the DEUTZ AG Management Board, said, "Despite the fact that the cost of materials has risen, and despite the substantial amount we have spent on research and development, we have been able to achieve a solid EBIT of almost 28 million Euro. The measures we have taken to improve profitability are already having an impact and things are looking good for the overall results at the end of the year."
The company also significantly improved its net financial debt, which was reduced by some 126 million Euro from the 30 September 2004 figure, and now stands at around 41 million Euro. In terms of its stockholders' equity ratio, assisted by the sale of the marine service business, DEUTZ has achieved a quite historic feat - at above 23%, the figure is the best it has been for 20 years.
The management board anticipates that there will be a further significant rise in sales in the two core segments, compact engines and power generation with gas engines, in the fourth quarter. The increase in the price of raw materials and energy will be offset to a large extent by respective measures. The company therefore expects an operating profit that is, on a comparable basis, much improved from last year.
For more information on this company:
DEUTZ Power Systems - Engines for Power Generation
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