Deutz AG Business Report FY2010
Business Highlights
Recent Years
-Europe (incl. Germany) accounted for 3/4 of revenue because this is where the Company supplies the major OEMs (SAME, Fendt, Volvo, and engineering companies such as Wirtgen Atlas-Copco and Terex).
-Total revenue growth of 38% generated above all in Europe (incl. Germany) and the USA.
Business Overview
-Unit sales and revenue grew even more strongly in the fourth quarter, up 42% and 38% respectively on 2009. The Company sold 167,680 engines and generated revenue of 1,189 million euro.-Europe (incl. Germany) accounted for 3/4 of revenue because this is where the Company supplies the major OEMs (SAME, Fendt, Volvo, and engineering companies such as Wirtgen Atlas-Copco and Terex).
-Total revenue growth of 38% generated above all in Europe (incl. Germany) and the USA.
Business Partnership
-The Company and Volvo Group signed a new cooperation agreement, extending the current contract which is due to end in 2013. Among other aspects, it sets out the development of Deutz medium duty engines for US Tier 4 Final and other exhaust emissions standards. The Company will also continue to supply engines that comply with the Euro 3, 4 and 5 emissions standards for current installations on Volvo commercial vehicles. (From a press release on April 12, 2010)Joint Venture
-Bosch Emission Systems GmbH & Co. KG, a joint venture among Robert Bosch, Deutz, and Eberspacher, started its operations in April 2010. The JV, headquartered in Stuttgart, Germany, offers modular-based diesel exhaust-gas aftertreatment system for commercial vehicles. Series production is planned for the third quarter of 2010 in Neunkirchen, Germany. (From a press release on April 8, 2010)R&D
R&D Expenditure |
(in million euros) |
FY2010 | FY2009 | FY2008 | |
Overall | 101.8 | 104.6 | 90.3 |
Compact engines segment | 90.8 | 93.1 | 78.7 |
R&D Structure
-The Company holds its research and development center in Cologne, Germany.R&D Activities
-Continued focus on forthcoming Tier 4 exhaust emissions standards from 2011 and the development to production standard of our two new engines.Investment Activities
Capital Investment |
(in million euros) |
FY2010 | FY2009 | FY2008 | |
Overall | 134.6 | 119.5 | 118.1 |
Compact Engine segment | 129.5 | 110.3 | 106.6 |
Customized Solutions | 5.1 | 9.2 | 11.5 |
Investment Activities
-Proportion of capitalised development expenditure: 73.5 million euro (2009: 66.6 million euro). It also includes capital expenditure of 19.3 million euro on the joint venture with Bosch and Eberspacher, BESG(Bosch Emission Systems GmbH & Co. KG), of which only 6.7 million euro has been paid so far.-The Company is opening a new just-in-sequence (JIS) assembly center at its facility in Cologne-Porz, Germany, to optimize its engine assembly processes. The investment into the project will be 2.5 million euros. (From a press release on February 10, 2010)