DEUTZ AG adjusts guidance for FY 2024 due to weak demand caused by economic conditions

DEUTZ AG adjusts guidance for FY 2024 due to weak demand caused by economic conditions

Cologne, October 3, 2024 – DEUTZ AG (ISIN DE0006305006) adjusts its guidance for the current financial year due to cyclically-induced decline in demand in the wake of the economic environment. In particular, unit sales and new orders in the third quarter were below previous expectations. Management also does not currently expect a compensatory recovery in customer demand in the engines business in the fourth quarter of 2024. From today's perspective, the company now expects unit sales for the full year to be below 150,000 engines (forecast from August 2024: maximum of 160,000 engines). DEUTZ has responded to the market situation by intensifying the cost-cutting measures that it has already implemented, such as short-time working, and also initiates structural measures to reduce direct and indirect costs and to increase efficiency.

The Management Board now expects revenue of around €1.8 billion (previously: €1.9 billion to €2.1 billion), an EBIT margin before exceptional items of 4.0 to 5.0% (previously: 5.0 to 6.5%) and a free cash flow before M&A that is at least break-even (previously: mid-double-digit million-€-range).

DEUTZ will publish its results for the third quarter of 2024 as planned on November 7, 2024. DEUTZ will hold its Capital Markets Day at its headquarters in Cologne on October 8, 2024.

Contact
DEUTZ AG / Mark Schneider / Head of Investor Relations, Communications & Marketing
Tel: +49 (0)221 822 3600 / Email: mark.schneider@deutz.com
 

Forward-looking statements: This ad hoc disclosure may contain certain forward-looking statements based on current assumptions and forecasts made by the DEUTZ management team. Various known and unknown risks, uncertainties, and other factors may lead to material differences between the actual results, the financial position, or the performance of the DEUTZ Group and the estimates and assessments set out here. These factors include those that DEUTZ has described in published reports, which are available at www.deutz.com. The Company does not undertake to update these forward-looking statements or to change them to reflect future events or developments.