Deutz AG Business Report FY2010

Business Highlights

Recent Years

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 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)