Overview of 2016
Revenue and EBIT higher than in previous year
Despite the market environment remaining difficult and companies still being reluctant to invest, we were able to expand our volume of business in the reporting year. Revenue rose by a moderate 1.0 per cent to €1,260.2 million. Unit sales fell by 3.8 per cent to 132,539 engines. There was a big increase in operating profit (EBIT), which climbed by €18.5 million to €23.4 million. This underlines the effectiveness of our measures aimed at increasing profitability.
We have divided our former Mobile Machinery application segment into two parts. From the 2016 financial year, information is provided for the Construction Equipment and Material Handling application segments. We are thus increasing transparency and reflecting the significance of various customer industries.
Steps to increase efficiency on schedule
The measures aimed at comprehensively optimising our network of sites in Germany are now either complete or well advanced. The transfer of crankshaft and camshaft production from Cologne-Deutz to the new shaft centre in Cologne-Porz was finished in February 2017. Assembly and order management have already been relocated to Ulm from Übersee on Lake Chiemsee, and all other functions will move during the course of 2017.
Positive market response to products
Our TCD engines equipped with a diesel particulate filter in the 2.9 to 7.8 litre cubic capacity range already meet EU Stage V, the next European emissions standard, which comes into effect in 2019. This benefits our customers, for whom we again launched many new products last year. The engines that we unveiled in 2016 to expand our portfolio at the upper and lower end of the power output range, including a new TCD 5.0 engine, gas variants and a DEUTZ powerpack, were well received.
New Chairman of the Board of Management appointed
Dr Frank Hiller was appointed as a member of the Board of Management of DEUTZ AG and its Chairman with effect from 1 January 2017. He succeeds Dr Helmut Leube, who retired on 31 December 2016.