MAN shrinks in the 2015 financial year

The MAN Group's order intake amounted to €14.4 billion in 2015, down 6% on the prior-year figure. The Commercial Vehicles business area recorded orders worth €11 billion, 4% less than in 2014. MAN Truck & Bus received 9% more orders, while order intake at MAN Latin America fell by more than half. At €3.4 billion, order intake in the Power Engineering business area was 13% lower than in the previous year.

In 2015, the MAN Group generated revenue of €13.7 billion, 4% less than in the previous year. The Commercial Vehicles business area generated revenue of €10.0 billion. MAN Truck & Bus revenue amounted to €9.0 billion, representing growth of 7% compared with the previous year. Unit sales increased by 8% to 79,222 vehicles. MAN Latin America generated €1.0 billion; unit sales fell to 24,472 vehicles. Sales in the Power Engineering business area amounted to €3.8 billion. MAN Diesel & Turbo increased its sales revenue to €3.3 billion. Renk generated sales of €487 million, slightly above the previous year's level. The MAN Group's free cash flow from operating and investing activities was positive and amounted to €0.5 billion.

Taking restructuring expenses into account, the MAN Group generated an operating profit of €92 million in the 2015 financial year. In the Commercial Vehicles business area, it fell to minus €101 million. MAN Truck & Bus generated an operating profit before special items of €205 million - a significant increase on the previous year. The restructuring expenses for the future program amounting to €185 million had a negative impact as special items. Operating profit at MAN Truck & Bus thus amounted to €20 million. MAN Latin America recorded €-120 million due to lower volumes in Brazil and took numerous countermeasures. At €283 million, operating profit in the Power Engineering business area was on a level with the previous year. MAN Diesel & Turbo generated € 216 million. Renk achieved an operating return on sales of €68 million and thus an operating return on sales of 14.0%, which remains at a high level. The MAN Group's operating return on sales fell to 0.7% in 2015 against the backdrop of the special items from the restructuring and the extreme economic downturn in Brazil.

"In order to increase profitability, we have introduced or intensified measures in all areas. We are striving to ensure that optimized products and components as well as procurement deliver significant results. We are also reviewing investments and scrutinizing and improving processes. The most important measure is the future program to sustainably strengthen competitiveness at MAN Truck & Bus. It includes the reorganization of truck production and the streamlining of administration. The changes introduced in the Bus production network in 2014 have now been almost fully implemented. As the Executive Board of MAN SE, we are convinced that it was and is right to initiate fundamental measures for the future, even in difficult economic times," says Joachim Drees, Chairman of the Executive Board of MAN SE (pictured).

In May 2015, the Supervisory Board of Volkswagen AG approved the creation of a commercial vehicle holding company, Volkswagen Truck & Bus GmbH. MAN Truck & Bus, MAN Latin America and Scania will work more closely together there, while retaining their identity and full operational responsibility. On average, this alliance is expected to generate additional long-term synergy potential of at least €650 million in operating profit per year. In view of the long product life cycles in the commercial vehicle business, it will take ten to 15 years before this is fully exploited. Synergies are being sought in the areas of procurement and development, for example.

For 2016, the Executive Board of MAN SE expects unit sales in the Commercial Vehicles business area to be on a par with the previous year, while sales revenue will not quite reach the previous year's level. Supported by the measures introduced, operating profit and operating return on sales will be significantly higher than in the previous year. Both key figures will also significantly exceed the 2015 figures before special items. red