Man SE reports Q3 operating profit of €185M, down 42% from year-ago period as slowing economic growth in its main European markets erodes demand from haulier companies and construction firms
October 30, 2012
– Dear Shareholders,
in 3rd Quarter of 2012, saw the MAN Group faced with a difficult economic environment. The sovereign debt crisis in the euro zone led to uncertainty in the markets, and effectively reduces the economy. Outside Europe, we take part in a falling market true. These developments lead to industry-decreasing number of orders, also at MAN. For commercial vehicles, there are other effects, such as the introduction of Euro V standards in Brazil in early 2012 added. News reaching us from South America but more positive news.
Order intake for the MAN Group fell under this sign in the 3rd Quarter to € 3.5 billion, an increase of 14% on the previous year. This is due to the Commercial Vehicles business area. So with MAN Truck & Bus in the months from July to September, orders declined by 16%. MAN Latin America took orders from the previous quarter to re-open and friendly outlook for the 4th Quarter. Support measures of the Brazilian government implemented towards the end of the 3rd Quarter of positive incentives. In Power Engineering business area including the continuing market weakness of the shipping industry has led to a drop in orders at MAN Diesel & Turbo of 9% in the first three quarters of the 2012th Thanks to good numbers in Turbomachinery, which are influenced by a large order, and orders were in the 3rd Quarter to a total of 8%.
Compared with the same quarter last year resulted in sales of the MAN Group in the 3rd Quarter of 2012., A slight decrease of 4%, it reached approximately € 3.9 billion Sales for the first nine months of 2012 is easy with € 11.6 billion, up 3% on the previous year. In the 3rd Quarter put the sales figures in the Power Engineering business area increased by 13% over the previous year, while the Commercial Vehicles business area has seen a decrease of 8%.
The tense economic situation was also in net income significantly. The MAN Group generated in the first three quarters of an operating profit of € 656 million compared with € 1,083 million in the previous year. This significant decrease is mainly attributable to the Commercial Vehicles business area, the operating profit declined to € 307 million. The return on sales of 5.7% corresponded MAN Group, a year earlier the rate was 9.0%. As stabilizing pillar again proved the Power Engineering business area. It drove in the 3rd Quarter of € 104 million to the Group's and was thus € 8 million on the contribution of the Commercial Vehicles business area. Highly gratifying business trends at the Renk. Here was the 3rd Quarter of both orders (€ 123 million) and sales (€ 126 million) and operating profit (€ 23 million) will be partly increased significantly.
Overall, the result is not satisfactory, so we will continue to work hard to cut costs. This does not preclude further investment in key areas for future research and development, sales and after-sales network is not enough. How important is a less economically vulnerable service business for our company's shows, especially in these days. Our technological leadership will be and we do not give up. Our customers and the public, we have in the past quarter on the international SMM in Hamburg and the IAA Commercial Vehicles in Hanover, this impressive technology expertise.
For the current fiscal year, we confirm the outlook for the MAN Group and continue to expect a modest decline in sales. Due to the declining European commercial vehicle market and the still subdued demand in Latin America, we expect a decline in sales of Commercial Vehicles by slightly more than 5%. For Power Engineering, we continue to expect sales growth of about 5%. The profit margin of the MAN Group will be approximately 6%.
Dr.-Ing. Georg Pachta-Reyhofen
CEO of MAN SE
30th October 2012