COLOGNE (dpa-AFX) - The weakening economy has weighed on demand at engine manufacturer Deutz at the start of the year. "The considerably weakened economic environment is now also reflected in our figures for the first quarter," said Deutz CEO Sebastian Schulte in a statement on Tuesday. However, he believes the company is in a much more robust position than before and is sticking to its forecast for the year. Deutz shares nevertheless fell.

In the late morning, the shares in the second-line index SDax lost around 2 percent to 5.68 euros. Following a recovery until mid-April, the share price had already come under pressure recently. Since the beginning of the year, however, Deutz shares have still gained almost a fifth.

Order intake in the first quarter fell by almost a fifth to 419 million euros compared to the same period last year. Compared to the fourth quarter, however, there was an increase of almost 20 percent.

At 38,242 engines, Deutz sold a good 17 percent fewer engines at the start of the year than in the same period last year. Turnover fell by 10.3 percent to 454.7 million euros, and thus less significantly, because Deutz was able to push through higher prices with customers. In addition, at least the service business performed quite well with slight growth.

The adjusted operating profit (EBIT before special effects) fell by around a quarter to 27.7 million euros. The corresponding return fell from 7.3 to 6.1 percent.

Consolidated profit amounted to 8.8 million euros after 23.8 million euros in the same quarter of the previous year. This includes a larger loss from the boat motor subsidiary Torqeedo compared to the same period last year, the sale of which to the Japanese supplier Yamaha Motor Deutz was completed at the beginning of April.

Torqeedo is no longer included in the forecasts. For 2024, Deutz continues to expect earnings of 1.9 to 2.1 billion euros. In the best-case scenario, the engine manufacturer expects turnover to remain at the previous year's level. Adjusted for one-off effects, earnings before interest and taxes are expected to account for 5.0 to 6.5 percent of this figure. In the previous year, the drive manufacturer achieved a margin of 5.7 percent. Deutz is also aiming to sell 160,000 to 180,000 engines this year./niw/stk