DEUTZ publishes preliminary results for the first quarter of 2015

• Business performance to date as expected

• Decline in unit sales and revenue due to effect of advance production of engines

• Sharp increase in operating profit

DEUTZ AG has today announced its preliminary financial results for the first quarter of 2015. The new orders received by the DEUTZ Group totalled €321.0 million, which was 22.5 per cent below the high level reported for the first three months of 2014 (€414.2 million). Unit sales fell by 17.0 per cent, from 44,457 engines to 36,907 engines. Much of this decrease is due to the strong sale of engines in the prior-year period ahead of the latest EU exhaust emissions standard. Revenue amounted to €318.1 million, down by 7.2 per cent on the figure of €342.7 million reported a year earlier. These figures are in line with the business performance that was expected for the beginning of 2015.

Despite the reduction in revenue, there was a significant increase in operating profit (EBIT before one-off items), which climbed from €1.9 million to €10.1 million. This represents an EBIT margin (before one-off items) of 3.2 per cent – a clear indication that the action taken to provide a further boost to profitability is working. Besides making structural improvements, DEUTZ has seen a marked benefit from the movements in the US dollar/euro exchange rate.

DEUTZ expects 2015 to be a year of transition dominated by lower demand resulting from the aforementioned advance production of engines in 2014. The Company is therefore forecasting that revenue will decline by around 10 per cent compared with 2014 and that the EBIT margin (before one-off items) will improve slightly to roughly 3 per cent.

Detailed information on the first three months of this year will be provided in the interim report for the first quarter of 2015, to be published on 5 May 2015.