MAN posts a significant increase in sales revenue

3 MinutesBy NZ Trucking magazineMarch 21, 2019

The MAN Group‘s order intake increased by 12% to €13.9 billion in 2018, while sales revenue expanded by 9% to €12.1 billion.

MAN Truck & Bus benefited from a rise in demand, with the European truck market achieving another slight increase from an already high level, and MAN Truck & Bus gaining market shares. Among the larger volume markets, in particular Germany, France, Poland, and Italy, saw growth in demand, while there was a moderate decline in the United Kingdom. Outside Europe, the market contracted to a very low level, especially in Turkey. The Russian truck market deteriorated during the course of the year and only recorded minimal year-on-year growth.

Unit sales in the trucks business were up 14% on the prior-year figure at 95,352 vehicles in the year under review. This figure also included 7871 MAN TGE vans.

MAN Latin America also saw positive development in 2018, maintaining a leading position in the Brazilian market for trucks weighing five tons and over and in the bus segment. After years of losses, MAN Latin America has become profitable again. The order intake and sales revenue recorded by MAN Latin America in 2018 were significantly higher than in the previous year.

In total, the MAN Group‘s operating profit was €332 million, slightly down on the previous year. As a proportion of the significantly higher sales revenue, the MAN Group‘s operating return on sales declined to 2.7%.

In fiscal year 2018, the MAN Group beat the projected targets in terms of unit sales and sales revenue, but only met its earnings targets to a limited extent.

“The fact that MAN managed to improve its market share in Europe and achieve significant growth in Brazil was encouraging,” said Joachim Drees, chief executive officer of MAN SE. “Higher sales volumes had a positive impact on earnings. At the same time, however, we had to face the restructuring of our business in India, made necessary by our decision to focus on issues of the future. To ensure future growth and attain profitability goals, it is essential to achieve continuous improvements and operational excellence. In addition, our investments are at a high level – as part of this process, we subject all projects to a critical review and set clear priorities for essential research and development activities.”

A key driver of the company‘s future success is its close integration with the TRATON GROUP. MAN Truck & Bus, Scania, and MAN Latin America work closely together under the umbrella of TRATON, jointly developing core power train components.

The executive board of MAN SE expects the MAN Group‘s sales revenue to increase slightly in 2019.