SDF revenues are in line with the last years

SDF has demonstrated robustness while maintaining turnover and levels of profitability in line with those of the last few years. The incipit, unusual, is a must when considering the fiscal year just ended. The start of the Deutz-Fahr Land factory in Lauingen (Germany), the new AGV assembly lines and the modern painting plant in Treviglio, have strongly affected production capacity up to April.

Making two calculations, with a turnover of 1,325 million euros, 2017 was only 3 percentage points below 2016. EBITDA was 7.9%, or 105 million euros, compared to the 8.7%, equal to 119 million, of 2016.

SDF does well in Europe and India but suffers in China and Turkey

The European market has proven to be stable overall, and the Mediterranean countries have shown greater liveliness than in the past. The SDF closed on a positive note with a growth rate of 2.3%. On the other hand, with regard to activities in China and Turkey, 2017 was instead a complex year. The motivations, deriving from external factors, have weighed negatively on the contribution of these markets in consolidating the group’s results. The accounts say 6 percent less on turnover and 13 percent less on EBITDA.

In China, the reduction in government subsidies has in fact generated a market drop of more than 30%. In Turkey, on the other hand, in January 2017 the government introduced protectionist measures that heavily penalized sales volumes. Very good results were achieved by the subsidiary in India. In fact, this closed 2017 with an increase in units sold by 75% compared to the previous year.

€ 70 million invested in 2017

Total investments of the group in 2017 amounted to 70 million euros. The most significant item is the 23 million for the development of new products. Then comes the 15 million to close the investment for the construction of the new plant and the Deutz-Fahr customer center in Lauingen. Third comes the 7 million investment to complete the last phase of the renovation of the production lines of Treviglio.

«2017 was perhaps the most important year for us in terms of change and strengthening in the recent past», commented Lodovico Bussolati, SDF Chief Executive Officer. «Faced with the initial difficulties, we have reacted decisively with actions of change that have enabled us to achieve superior results in the second half of the year compared to the same period of the previous year and to close the year with numbers close to those of 2016».

Highlights

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