MUNICH (dpa-AFX) - Germany's commercial vehicles maker Maschinenfabrik Augsburg-Nürnberg or MAN SE (MAGOF.PK) reported a clear growth in first-half 2014 operating profit, despite significantly lower sales revenue. Six-month operating profit amounted to 222 million euros, compared with a clear operating loss of 123 million euros in the first half of 2013. Provisions for a power plant project at MAN Diesel & Turbo that had not yet been completed significantly impacted Group profit in the prior-year period, the company said.
In the first half of fiscal 2014, the MAN Group recorded profit before tax of 158 million euros and profit after tax of 92 million euros.
Year-over-year, the MAN Group's first-half sales revenue dropped by 12% to 6.7 billion euros, and order intake amounted to 7.7 billion euros, down slightly on the year-ago level due to lower order intake in the Commercial Vehicles business area.
During the period, demand in the European commercial vehicles market grew slightly, but continued to feel the effects of the launch of the Euro 6 emission standard. This meant that demand was again down slightly year-over-year in the second quarter. While MAN is once again more optimistic about the economic situation in Europe, it is facing growing challenges in Brazil, a key market for the company.
Looking ahead, MAN expects full-year sales revenue to be noticeably below the prior-year figure. However, it sees a significant increase in operating profit. The operating return on sales would significantly exceed the 2013 figure.
Copyright RTT News/dpa-AFX