MAN restructures for the future
MAN has announced it is addressing its current cost structures and significantly enhancing efficiency to better respond to market fluctuations in the future and to maintain its high competitive level. The company has launched a Group-wide efficiency program, which includes streamlining administrative functions at MAN Truck and Bus and reorganising truck production. What it describes as the tense situation in Brazil continues to have a significant negative impact on the Group’s figures, while the European commercial vehicles market is now growing again.
This announcement comes following MAN’s issuing of its second quarter financial results. In this statement, MAN Truck & Bus reported achieving a 9% rise in order intake to €5.1bn/£3.61bn. The division recorded an operating loss of €49m/£34.67m in the first six months (previous year: operating profit of €79m/£55.89m). The company said this was mainly attributable to restructuring expenses associated with the future growth program to strengthen its competitiveness for the long term.
At €705m/£498.78m, order intake in MAN’s Buses business was down 2% on the previous year in the first half of 2015. The order intake figure of 2,743 was slightly above the 2,695 recorded in the previous year. This was primarily due to the rise in order intake in Europe. The sector generated sales revenue of €717m/£507.27m, up on the prior-year figure of €612m/£432.98m. It sold 2,883 buses (previous year: 2,259), a year-on-year increase of 28%. The main growth drivers were the year-on-year increase in the order backlog at the beginning of 2015 and a rise in unit sales in Germany, Bahrain and Israel. In the European bus market, MAN Truck & Bus had a market volume of 12% six months into the year (previous year: 11.7%).