Monday, 6 September 2010
Germany's Man sees order rise after Q2 profit
Thursday, 29 July 2010 at 11:15, Reuters, Munich
German industrial group Man SE returned to profitability in its core European truck operations in the second quarter as promised and forecast a significant increase in group order intake for the full year.
After demand for new trucks halved in size virtually overnight last year as a result of the global economic slowdown, truck makers are optimistic they are out of the trough of the cycle.
Group operating profit rose to 278m in the second quarter, beating the 224m forecast in a Reuters poll of 13 banks and brokerages. Order intake in the period totalled €3.7bn.
European truck unit Man Nutzfahrzeuge posted a €71m operating profit in the second quarter, while Man's Brazilian unit, bought from Volkswagen last year, saw a €96m operating profit in the same period.
Second-quarter new truck orders at MAN Nutzfahrzeuge rose 90 per cent to 15,185 vehicles.
"The Man Group expects to continue its positive performance and, for full-year 2010, is forecasting a significant increase in order intake, revenue growth of more than 10 per cent, and a return on sales at the level of the first six months," it said.
First-half group sales rose to €6.7bn from €5.7bn a year earlier.
Industry data published last week by Brussels-based ACEA showed a 17 percent increase in registrations of the largest new commercial trucks in June over the corresponding figure in 2009, marking the first monthly increase in two years.
On Tuesday, industry leader Daimler Trucks raised its 2010 operating profit forecast for the second time this year to 1 billion euros, five times as much as management initially forecast in February.
Swedish rival Scania, which like MAN has German carmaker Volkswagen as its controlling investor, posted a record operating margin of 17 per cent, a level of profitability more likely to be found at luxury carmaker Porsche AG than at a truckmaker.
After demand for new trucks halved in size virtually overnight last year as a result of the global economic slowdown, truck makers are optimistic they are out of the trough of the cycle.
Group operating profit rose to 278m in the second quarter, beating the 224m forecast in a Reuters poll of 13 banks and brokerages. Order intake in the period totalled €3.7bn.
European truck unit Man Nutzfahrzeuge posted a €71m operating profit in the second quarter, while Man's Brazilian unit, bought from Volkswagen last year, saw a €96m operating profit in the same period.
Second-quarter new truck orders at MAN Nutzfahrzeuge rose 90 per cent to 15,185 vehicles.
"The Man Group expects to continue its positive performance and, for full-year 2010, is forecasting a significant increase in order intake, revenue growth of more than 10 per cent, and a return on sales at the level of the first six months," it said.
First-half group sales rose to €6.7bn from €5.7bn a year earlier.
Industry data published last week by Brussels-based ACEA showed a 17 percent increase in registrations of the largest new commercial trucks in June over the corresponding figure in 2009, marking the first monthly increase in two years.
On Tuesday, industry leader Daimler Trucks raised its 2010 operating profit forecast for the second time this year to 1 billion euros, five times as much as management initially forecast in February.
Swedish rival Scania, which like MAN has German carmaker Volkswagen as its controlling investor, posted a record operating margin of 17 per cent, a level of profitability more likely to be found at luxury carmaker Porsche AG than at a truckmaker.
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