While overall figures showed a significant falloff in demand for Deutz diesel engines last year, the German manufacturer was encouraged by the healthy increase in sales to the agricultural machinery sector.

Deutz sold almost 12% fewer power units last year — totaling 252,359 units — and its compact engines business suffered a similar decline — to 219,681 units — as construction equipment firms slashed production schedules toward the end of the year.

But revenues from…