MAN Cuts 2013 Earnings Target on Europe Decline image

MAN announced it cuts its 2013 earnings target due to a drop in Europe’s truck market and extra costs for planned power-plant.

For the first quarter MAN reported a loss of 82 million euro compared with a profit of 254 million euro in the same period last year, and much higher that the analysts’ estimation of a 30.8 million-euro loss. MAN said that he sees a ‘significant’ drop in this year’s operating profit and sales ‘well below’ the 2012 level. In March, demand for the commercial vehicles in the European market fell for the 15th month in a row. During the first quarter heavy truck sales fell 17% to 64,198 units, according to ACEA.

“We still don’t see any signs of a significant economic recovery in 2013,” Chief Executive Officer Georg Pachta- Reyhofen told journalists today on a conference call. At the same time, MAN will “of course” report a “positive result” for the full year.

According to ACEA, heavy truck registrations in March fell 18.3% in the EU, with the UK down 6.2%, France 16.7%, Italy 20.5%, Germany 23.1% and Spain 27.0%. During the first quarter all major markets reported double-digit drops with the UK down 12.5%, France 16.4%, Italy 17.6%, Germany 19.2% and Spain 20.5%. The overall fall was 16.7% to 46,985 units.

Source: Bloomberg