Bloomberg News

MAN SE Reiterates Sales Forecast as Net Income Drops 77%

May 03, 2012

MAN SE (MAN), the German truckmaker controlled by car manufacturer Volkswagen AG (VOW), stuck to a forecast that sales this year will fall after first-quarter profit plunged 77 percent.

Net income dropped to 129 million euros ($170 million) from 565 million euros a year earlier, the Munich-based company said today in a statement. Earnings before interest and taxes slipped 23 percent to about 250 million euros, while revenue rose 2.7 percent to 3.8 billion euros, it said, reiterating figures released last month.

MAN expects 2012 sales to be “slightly” lower as global economic growth slows. Industrywide sales of trucks heavier than 16 tons fell 2.8 percent in Europe in the first quarter as central bankers predict a recession in countries using the euro, according to the European Automobile Manufacturers’ Association.

The company plans to capitalize on high economic growth in China and Russia in the coming years while it faces increasing competition in Europe, Chief Executive Officer Georg Pachta- Reyhofen said last month, adding that the truckmaker expects the global economy to recover in 2013. Slowing Brazilian demand, as sales retreat from a spike last year prompted by a regulatory change, will reduce the company’s revenue there in 2012, he said.

Volkswagen increased its stake in MAN, Europe’s third- biggest truckmaker, to 73 percent of the common shares on April 12. The carmaker has been accumulating control of MAN to forge closer links with Scania AB (SCVB), the Swedish commercial-vehicle manufacturer that VW also controls.

To contact the reporter on this story: Chad Thomas in Berlin at cthomas16@bloomberg.net

To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net


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