This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at El grupo SDF apuesta por el desarrollo de mercados y productos para sortear la crisis

German italo of tractors, combine harvesters, engines and agricultural machinery manufacturer presents its predictions for 2010

The Group SDF committed to the development of markets and products to overcome the crisis

Maite Robles12/04/2010

The results with negative sign before the company Same Deutz Fahr in 2009 do not seem to discourage the forecasts of expansion and development of the group in the world. An emphasis on new products and the international strategy are the proposals to recover billing data of three years, they exceeded the one billion euros.

same deutz fahr closed 2009 with a turnover of 876 million euros, representing a decline of 28.1% compared to 2008. Figures that have not spared the company to make certain adjustments both in template and control of costs and thus tackle 2010 with the confidence of having a business growing base and good prospects for this year and a plan of internationalization to 2020, as stated by the Chief Executive Officer of the group, Massimo Bordi, during the presentation of the results of the group in Madrid.

Presentation of the results of the group in Madrid.

One of the events affecting the fall in turnover was the decline in 16% of the registrations of tractors in Europe in 2009, a fall in remarkable because Europe is the market that more weight in SDF75% of the total sales. This descent joined the USA drops by 20%, South America also reduced the turnover by 20%, 27% in Africa and striking 75% in Russia. On the contrary, registrations increased in China 18% and India % 16.

Although if registrations fell by 16% in 2009, the sales did by 25% in Europe. A difference that Bordi blamed that in 2008 the production was high while he stayed in the inventories of dealers and it was not intended for the end customer and claims that it is the case is that they are now shedding of such surplus which demanded a year agoby what the figures did not correspond.

The group leaders also highlighted some positive data from 2009. The full line business of SDF, Aldo Carozza, Vice President said that the market share in Western Europe has increased 0.5 points, coming to 13.2%, with particularly positive results in France, Spain, and the Scandinavian countries. In Eastern Europe, the market share has increased by 0.7% and has become of 11.3%, thanks mainly to the markets of Poland, Slovenia, Croatia, Romania. In addition, the sale of tractors in markets outside Europe has improved considerably, despite the evident decline in demand. In particular, Morocco, Egypt, Tunisia, Angola and Venezuela have allowed to achieve very satisfactory results. However, the country that presents the most significant increase in sales is the India: a 27% increase, thanks to the introduction of the Deutz-Fahr brand, especially with the range of tractors Agrolux.

Javier Seisdedos, CEO of SDF.

The spare parts business has also contributed significantly to alleviate the poor results of the 2009. The turnover of this sector has increased from 12.7 per cent of the previous year to 17.3% of the total turnover.

In this way, an emphasis on new products and international expansion will be one of the keys. The strategy for carrying out this growth will be through the diversification of the venues, with key points such as the Germany or in the case of direct sales through subsidiaries and associated warehouses. In Spain, the director-general of SDF, Javier Seisdedos, stressed that despite the fall of the invoicing, in Spain it has been 25%, the Group aims to increase the benefits and direct sales is giving good results. He explained that one of the barriers that are is the funding, and that they will try to facilitate the constraints and requirements of the entities. One of the points that appreciated is that the relationship with the customer was ever closer with the increase in the use of the network by farmers to consult and ask about the Group's products.

Forecasts

After two years in negative sign, 2010 has not started badly for the company during the first quarter has already noticed an increase of 12% in the number of orders. Certain measures such as the significant reduction of costs and savings plan, it aims to promote the growth of the turnover with the development of new markets outside Europe. Other actions with a view to the future is the bet for spare parts, that after verifying the success of last year, the objective is to reach the 200 million for billing to three-year view offering more product with more profit marginso also reinforce the business of the dealer. In General, SDF aims to return to reach the figure of one billion euros by end of this year with the challenge that met expectations and that investments in new markets will begin to benefit.

The Managing Director of SDF stopped to explain the importance of Deutz Fahr works now as a global brand for the internationalization of the group. Especially when the goal is that product development increase and focus on increasing the harvesters, in parallel to the manufacture of tractors. So the company preempted that harvesters of five or six napkins, as well as up 450 horsepower rotor machines are being manufactured. With regard to tractors, Bordi indicated that news of tractors are aimed at an increase in the supply of catalog at coroto term, going from three machines to eight. The new are those of 100-110 CVT, CVT, CVT 220 120-140 full powershift, 250 CVCVT, 350 HP CVT and CVT 450 HP.