MAN SE (MAN), the German truckmaker controlled by Volkswagen Ag said net profit plunged 77 percent in the first quarter.
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.
The MAN Group recorded an operating profit of €253 million in the first quarter (previous year: €325 million). The 22% decline is due above all to increasing competition in the stagnating markets in the Commercial Vehicles business area.
New orders were little changed at 4.4 billion euros, MAN said, on the back of slight stronger demand from abroad but a 13-percent drop in its home market.
MAN Truck & Bus recorded a rise of 2% to €2.5 billion, whereas orders at MAN Latin America declined by 2% to €0.8 billion due to the introduction of the Euro V emission standard.
Volkswagen, Europe’s biggest car maker, increased its majority holding in MAN to almost 74 percent in April, pressing ahead with steps to forge closer ties between MAN and Swedish rival Scania which VW also controls.