Overview of 2015
Revenue lower than in previous year
Having made a solid start in the first six months of 2015, our business suffered in the second half of the year due to a slowdown in global economic growth and a strong reluctance to invest on the part of our customers. Moreover, the advance production of engines in the prior year continued to have an impact. As a result, our revenue was down by 18.5 per cent to €1,247.4 million. Unit sales fell by 29.8 per cent to 137,781 engines. However, operating profit
(EBIT) remained in positive territory at €4.9 million, underlining the effectiveness of the measures we have taken to improve efficiency.
Consolidation in China
In view of lower growth forecasts in China, we decided in 2015 to consolidate our Chinese manufacturing operations. In future, our established DEUTZ Dalian joint venture, which has adequate capacity, will satisfy local demand. As part of this consolidation, we wound up our DEUTZ Engine (China) Co., Ltd. joint venture, sold the WEIFANG WEICHAI-DEUTZ DIESEL ENGINE CO., LTD. joint venture to our previous co-shareholder and initiated the closure of the DEUTZ Engine (Shandong) Co., Ltd. joint venture.
Optimisation of German site network on schedule
The decision that we took in 2014 to optimise our network of sites in Germany is being implemented as planned. Firstly, this includes the consolidation of our facilities in Cologne, where we are moving out of our Cologne-Deutz site and, from 2016, will begin producing camshafts and crankshafts in a new shaft centre at our largest site in Cologne-Porz. Secondly, our exchange engine plant in Übersee on Lake Chiemsee will have been integrated into the plant in Ulm by 2017 and will then be closed; assembly and order management have already been moved. We expect these measures to bring about a further long-term increase in our efficiency.
Positive market response to new 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 is expected to come into effect in 2019. This offers many advantages to our customers. The feedback on our products has been very positive. We have also announced that we intend to add gas engines to our product range in future. In addition, we have intensified our existing partnership with the KION Group, entering into an extended long-term cooperation arrangement.