DEUTZ AG Revises 2024 Forecast Amid Weak Economic Climate

DEUTZ AG has adjusted its financial guidance for 2024, citing a downturn in demand due to adverse economic conditions. The company identified a shortfall in unit sales and new orders in Q3, forecasting a decline below 150,000 engines sold for the year, down from an initial estimate of up to 160,000. DEUTZ has intensified cost-saving measures and is implementing structural changes to enhance efficiency.

The revised revenue expectation for the year is approximately €1.8 billion, a decrease from the prior range of €1.9 billion to €2.1 billion. The EBIT margin before exceptions is now expected to be between 4.0% and 5.0%, a reduction from the earlier projection of 5.0% to 6.5%. Free cash flow is anticipated to be at least break-even, downgraded from a mid-double-digit million-euro range.

The company will continue to monitor market conditions and plans to release its Q3 results on November 7, 2024, followed by a Capital Markets Day on October 8, 2024.