For Deutz 2021 was a highly successful year from both an operational and a strategic perspective, with revenues increased by almost 25 percent to €1.62 billion and improved EBIT margin before exceptional items by around 8 percentage points to 2.3 percent.

At the same time, Deutz made substantial progress with transforming its business to focus more on alternative, green drive systems. “Our hydrogen engine is just one example of how Deutz is positioning itself in the field of off-highway drive technologies for a sustainable future,” says CEO Sebastian C. Schulte. Commenting on the current year, he adds: “The supply situation remains difficult, and we anticipate that the supply chain will continue to contribute to the pressure on margins. Moreover, nobody can predict the economic impact of the war between Russia and Ukraine. We are therefore preparing for a challenging year.” 

To report even more transparently on its transformation, Deutz introduced a new Green segment on January 1, 2022 that will cover all activities connected with the development and production of new non-diesel drives. The new reporting structure will be used for the first time in connection with the results for the first quarter of 2022. 

Reflecting the growth in orders and unit sales, Deutz generated consolidated revenue of €1,617.3 million in 2021. All application segments contributed to this year-on-year growth of 24.8 percent. Service revenue rose by 15.7 percent to €403.1 million in the reporting period. All regions contributed to the increase in revenue with double-digit percentage growth rates. The EMEA region saw a particularly sharp rise. 

You can read full 2021 annual report here.

2022: a direct impact of significant uncertainty?

The geopolitical impact of the war between Russia and Ukraine on the global economy and on the flow of goods around the world is highly uncertain. Fortunately, none of Deutz’s direct suppliers are located in these regions. But the indirect impact for the Deutz business is currently impossible to assess. 

Before the war between Russia and Ukraine broke out, Deutz had assumed that the upturn in the relevant customer industries would be sustained this year. At that time, it was also assumed that global problems with the supply of input materials would continue to weigh on business performance and that supply issues for certain components would persist. Based on these assumptions, Deutz predicted unit sales of 165,000 to 180,000 DEUTZ engines in 2022, which would have resulted in an increase in revenue to between €1.70 billion and €1.85 billion. The EBIT margin before exceptional items would likely have been between 3.5 percent and 5.5 percent. 

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