Difficult third entertain in 2014 due to stretched blurb vehicles market

For a MAN Group, a third entertain of a stream mercantile year was again overshadowed by a formidable conditions in a general blurb vehicles markets. In particular, a conditions in Europe and South America — critical sales markets for MAN — stays moving on a behind of a mercantile downturn in these regions. In Europe, MAN is also still feeling a pull-forward effects from a introduction of a Euro 6 glimmer standard. Political uncertainties surrounding a Ukraine predicament and in a Middle East also had an impact.

This saw a MAN Group’s sequence intake decrease by 20% year-on-year to €3.5 billion in a third entertain of 2014. MAN Truck Bus available an sequence intake of €2.1 billion in a third entertain of 2014, almost next a prior-year figure (€2.8 billion). It should however be remarkable that a prior year includes pull-forward effects in tie with a Euro 6 glimmer standard. MAN Latin America’s orders were also down year-on-year in a third entertain of 2014, disappearing by 26% to €534 million. This was essentially due to a poignant decrease in a marketplace sourroundings and a debasement of a Brazilian real. In a Commercial Vehicles business area, sequence intake for a initial 9 months was 13% reduce than in a prior year. By contrast, a sequence conditions was somewhat softened in a Power Engineering business area, where sequence intake rose to €2.7 billion in a same period. MAN Diesel Turbo’s sea business picked adult again, lifting sequence intake by 7% to over €2.4 billion in a initial 3 quarters. At €321 million, Renk did not compare a prior-year figure.

The MAN Group’s sales income declined by approximately 5% year-on-year to €3.5 billion in a third quarter. The figure for a initial 9 months of 2014 was down 10% during €10.2 billion. The Commercial Vehicles business area generated sales income of approximately €2.5 billion in a duration from Jul to Sep 2014. The Power Engineering business area saw sales income boost year-on-year and contributed €1.0 billion to a MAN Group’s sales revenue.

The MAN Group’s handling distinction softened significantly as opposite a prior year, rising by €268 million to €304 million in a initial 9 months of mercantile 2014. The MAN Group’s handling lapse on sales was 3.0% (previous year: 0.3%). However, a demeanour during a third entertain of 2014 reveals a opposite picture: The Commercial Vehicles business area available an handling distinction of €18 million, while a Power Engineering business area generated an handling distinction of €83 million. This corresponds to a decrease of €80 million and €20 million, respectively, as opposite a prior-year quarter. This is mostly attributable to a reduce ability function during MAN Truck Bus and a poignant decrease in sales volumes during MAN Latin America.

In a past, MAN was means to rest on a business areas to recompense for formidable situations — and this is also a box today. For example, a Power Engineering business area accounted for a largest share of a MAN Group’s handling distinction in a duration from Jan to Sep 2014. However, MAN Diesel Turbo’s handling distinction also run-down year-on-year on a third entertain of 2014 and amounted to €59 million. By contrast, Renk reported a really good quarter, with handling distinction augmenting to €24 million.

Dr. Georg Pachta-Reyhofen, CEO of MAN SE, said: “Overall, a total are positively reduction than satisfactory. This is because we are doing all we can to get behind on lane as shortly as possible. For example, we have successfully introduced cost-cutting measures over a past few months such as changes to a prolongation structure in a train business, a introduction of short-time operative in Steyr and Salzgitter, and despotic cost discipline. Some of these cuts are painful. But they are necessary. The superb response to a products and services showcased during a SMM and a IAA — both vast trade fairs — in Sep shows that we can demeanour to a destiny with confidence.”

MAN is awaiting a poignant year-on-year decrease in sales income and tolerably aloft handling distinction for mercantile year 2014. The MAN Group’s handling lapse on sales will somewhat surpass a 2013 figure.