Business performance in the DEUTZ Customised Solutions (DCS) segment

New orders in line with 2013

In the year under review, the DEUTZ Customised Solutions (DCS) segment received new orders worth €264.0 million, the same amount as in the previous year. The level of new orders rose in the Mobile Machinery and Agricultural Machinery application segments, as did the service business. At 31 December 2014, the order book stood at €78.2 million, 23.0 per cent higher than at the end of 2013.

Fewer engines sold

Unit sales in the DCS segment fell by 17.3 per cent to 13,278 engines in 2014. All regions and application segments reported lower unit sales.

Revenue down on 2013

In the year under review, the DCS segment generated revenue of €250.3 million, a decline of 5.3 per cent, although the Americas region managed to increase its revenue by 5.7 per cent. By contrast, revenue was down by 5.6 per cent and 11.8 per cent respectively in the EMEA and Asia-Pacific regions. The Agricultural Machinery application segment posted an increase of 22.2 per cent in revenue and service business revenue was also up, by 6.1 per cent. By contrast, the revenue attributable to the Mobile Machinery, Automotive and Stationary Equipment application segments declined by 3.0 per cent, 4.3 per cent and 10.5 per cent respectively.

Healthy level of new orders in the fourth quarter

In the fourth quarter of 2014, the DCS segment achieved new orders worth €69.7 million, exceeding the equivalent figure in the fourth quarter of 2013 by 8.6 per cent. New orders were also up by 16.9 per cent compared with the third quarter of 2014. Unit sales in the final quarter of 2014 declined by 12.4 per cent compared with the corresponding quarter of 2013 but rose significantly (by 93.5 per cent) in comparison with the previous quarter, which had been adversely affected by supply shortages relating to one supplier. The revenue attributable to the DCS segment in the final quarter was down by 9.1 per cent year on year and amounted to €75.2 million, but nonetheless was around a third higher than the figure for the third quarter of 2014.

DEUTZ Customised Solutions: Revenue by application segment

Chart: DEUTZ Customised Solutions: Revenue by application segment

DCS operating profit

In the DEUTZ Customised Solutions segment, earnings (EBIT before one-off items) fell by €20.2 million year on year to €18.8 million (2013: €39.0 million). In addition to the fall in the volume of business, this decline largely related to impairment losses totalling €9.5 million recognised on property, plant and equipment and intangible assets and to the adjustment of the equity-accounted value of our Argentinian joint venture DEUTZ AGCO MOTORES S.A., which equated to a decrease of €1.8 million.


The operating loss of the Other segment amounted to €2.3 million (2013: loss of €0.2 million) and was particularly affected by the write-off of a loan to our joint venture DEUTZ AGCO MOTORES S.A. Because the segment structure of the DEUTZ Group at the time the loan was granted was not comparable with the current segment structure, the amount receivable for the loan was not assigned to either the DCE or the DCS segment.

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