Lower sales to the agricultural sector is largely blamed for the 29.8% drop in the number of new engines sold by Deutz Ag to 137,781 last year. Down on 2014’s 196,403 units, the company says it has been affected by a distinct reluctance to invest on the part of end customers since the second half of 2015. The company also reckons many European customers bought new tractors and machines in 2014 before a new emissions standard for engines under 174hp (130kW) came into force. The drop in engine sales led to an 11% fall in Deutz Ag’s 2015 revenues to €1.22 billion (€1.37 billion in 2014), but the company stresses the net income of €3.5 million (€19.5 million in 2014) underlines the effectiveness of the efficiency measures the company has initiated. “We will continue to focus on increasing efficiency and quality,” says chairman Dr Helmut Leube of the Deutz management board. “The measures to optimise our network of sites in Germany are running to plan and we have forged ahead with the consolidation of our sites in China.” The company expects the market conditions to remain challenging for the rest of this year, and forecasts that revenues will stagnate or, at best, rise slightly.