Deutz remains cautious on outlook despite increase in profitsThe engine manufacturer Deutz increased its profits sharply in the second quarter, but is still making reservations about its forecast for the year. From April to June, the Cologne-based company achieved adjusted earnings (EBIT before special items) of 26.8 million euros. Compared to the same period last year, this is an increase of almost 68 percent. Deutz announced on Thursday that the group had benefited from a higher business volume and savings. The total number of engines sold rose by 6.3 percent to 58,726. Sales increased by a good 13 percent to EUR 482.5 million. The outbreak of the Ukraine war has not had any significant negative effects on demand so far. Deutz benefits from the fact that business in Russia, Belarus and the Ukraine only accounts for around 20 million euros in sales per year. In addition, the company has no branches in Ukraine or Belarus and no direct suppliers based in the crisis regions. After Deutz stopped its new engine business with Russia and Belarus until further notice immediately after the outbreak of war, the next step was to freeze all technical and sales activities. The effects of the war, such as rising energy and raw material prices, material and logistics bottlenecks and a possible delivery stop for Russian gas in parts of Europe meant great uncertainties for Deutz as well. The forecast for the full year 2022 published in the 2021 annual report is therefore still subject to change. In it, the Cologne-based company had announced an increase in sales to 1.70 to 1.85 (2021: 1.6) billion euros and an EBIT margin before special effects of 3.5 to 5.5 percent. In the second quarter, the return was 5.6 percent.