‘Sound performance’ for MAN
MAN Group said it had a ‘sound performance’ in the first half of fiscal year 2014. Demand in the European CV market rose slightly during this period but the company continued to feel the effects of the introduction of the Euro6 emission standard. The MAN Group’s order intake in the first half of the year was €7.7bn/£6.14bn, down slightly on the prior year level due to lower order intake in the CV business area. Order intake here declined by 6% year-on-year to €5.8bn/£4.6bn. This meant that demand was again down slightly year-on-year in the second quarter. While MAN is optimistic about the economic situation in Europe, it is facing growing challenges in Brazil, a key market for the company. MAN Truck & Bus’s order intake was up 2% on the prior-year period, at €4.7bn/£3.75bn. This part of its business generated sales revenue of €3.9bn/£3.1bn.
MAN is expecting slightly stronger global economic growth in 2014 compared with the previous year. However, there are still uncertainties surrounding economic developments owing in particular to the ongoing sovereign debt crisis in Europe, as well as political instability, particularly in connection with the Ukraine crisis. The management is keeping a close eye on economic developments in Brazil, which are also a cause for concern. On the basis of business developments in the first two quarters of 2014, MAN expects the Group’s full year sales revenue to be noticeably below the prior-year figure. However, MAN expects to see a significant increase in operating profit.