Deutz lowers forecast

Engine maker Deutz has revised its financial forecast for the year downwards. Rather than the previously expected -10% drop in revenues in 2015, compared to 2014, the company now expects sales to be -20% lower than last year. It also said its order intake was “very low.”

Deutz said it is only likely to break even in terms of earnings before interest and tax (EBIT) terms this year. It had previously forecast a +3% EBIT margin

A statement from the company said, “The current reluctance to invest on the part of end customers means that the inventories of a number of European customers that were built up last year in anticipation of the new emissions standards are being used up more slowly than predicted. Deutz is to carry out further analysis of the impact this will have on the coming year.”