on DEUTZ AG (isin : DE0006305006)
DEUTZ Maintains Strong Margins Amid Weak Demand in H1 2024
DEUTZ AG has reported a steady adjusted EBIT margin of 5.7% for the first half of 2024, despite a notable decline in revenue and unit sales. This performance is within the company's forecast range, demonstrating resilience in a challenging market environment.
The economic backdrop resulted in new orders and unit sales dropping by 18.1% and 18.9% respectively. However, revenue only fell by 12.6% to €875.5 million, aided by cost optimization and growth in the service business, which saw a 6.5% increase.
Strategic advancements were made, including the acquisitions of Blue Star Power Systems and the sales and service activities of Rolls-Royce Power Systems. DEUTZ CEO Dr. Sebastian C. Schulte highlighted these as key steps towards a broader, future-proof business framework.
Looking ahead, DEUTZ anticipates reaching the lower end of its 2024 unit sales forecast. Revenue expectations remain between €1.9 billion and €2.1 billion, with an unchanged adjusted EBIT margin forecast of 5.0%-6.5%.
R. H.
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