MAN ‘cautiously optimistic’
In its financial report for the first quarter of the year, MAN said it was ‘cautiously optimistic’ about fiscal year 2014. It reported a significant increase in its Group operating profit despite a slight decrease in order intake and lower sales revenue. All of the MAN Group’s divisions returned to profitability. MAN Truck & Bus’s order intake was up 3% on the prior-year quarter, at £1.9bn/€2.3bn. This was boosted by the improved economic environment in Europe and a number of major orders. However, the European market continued to be dominated by pull-forward effects from the introduction of Euro6 emission controls. It recorded sales revenue of £1.5bn/€1.8bn. Higher margins and savings in material costs saw the division improve from an operating loss of £18.1m/€22m to an operating profit of £9m/€11m. MAN Latin America’s operating profit declined from £48.5m/€59m to £26.3m/€32m. The MAN Group’s operating return on sales was 2.2%. All in all, the MAN Group recorded profit before tax of £34.5m/€42m in the first three months and profit after tax of £23m/€28m.