DEUTZ AG

Management Reports • May 18, 2004

News Details

Ad-hoc | 18 May 2004 10:12

DEUTZ is restructuring its medium and large engines business

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– DEUTZ is restructuring its medium and large engines business New legal entity: DEUTZ Power Systems One-time restructuring charge Euro 40 million to create a more efficient and profitable organisation 2004 sales and operating profit targets confirmed DEUTZ is restructuring its medium and large engines business. All relevant activities will be concentrated in the new separate entity DEUTZ Power Systems located in Mannheim, Germany. With this step DEUTZ is resolutely continuing the restructuring of its medium and large engines business that began with the DEUTZ Re-Launch Programme. The new business unit DEUTZ Power Systems will concentrate even more intensively on profitable market segments. The key area of focus will be the gas engines business for decentralised power generation. Particularly strong growth rates are expected in the medium term for renewable energy such as landfill-gas and bio-gas. The service business for diesel engines in stationary and marine applications will be further expanded, supported by the existing worldwide service network of DEUTZ AG. The required cost reductions in the medium and large engines business will be achieved through a significant reduction of staff. On a worldwide basis, up to 400 jobs of the approximately 1,550 jobs in the medium and large engines business are to be cut. This reduction of staff is to occur gradually and will depend on the actual engine production programme. The extraordinary costs associated with the restructuring are estimated at Euro 40 million and will be provisioned in the second quarter of 2004. The targets for sales and operating profit for the current financial year remain unchanged. In the medium term DEUTZ anticipates a considerable increase in earnings by approximately Euro 20 million. With these measures DEUTZ is completing the strategic re-direction of the entire company. The Cologne-based engines manufacturer has developed a new strategic profile in the compact engine segment during the last two years resulting in significantly improved profitability. You will find further information on DEUTZ AG at http://www.deutz.de/ Contact:Georg Diderich Tel.:+49 (0) 221 8 22-54 42 Fax:+49 (0) 221 8 22-54 58 Email: diderich.g@deutz.de end of ad-hoc-announcement (c)DGAP 18.05.2004 ——————————————————————————– WKN: 630500; ISIN: DE0006305006; Index: SDAX Listed: Amtlicher Markt in Düsseldorf und Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Hamburg, Hannover, München und Stuttgart 181012 Mai 04