.
- Q2/2007 operating profit: €403 million (up 54%); 6-month (H1): €721 million (up 52%)
- Nonrecurring income of €241 million
- H1 ROS at 10.7% for the first time double-digit (H1/2006: 7.8%), 10% excluding Scania dividend
- Q2 sales up 9% to €3.5 billion; H1 sales rising 12% to €6.8 billion
- Q2 and H1 order intake €4.8 billion (up 17%) and €9.6 billion (up 20%), respectively
- Prospects for all of 2007: sales to climb 10%+, with ROS just above 10%
Order intake, sales and operating profit all advancing
The MAN Group closed Q2/2007 with vigorous gains in order intake, sales, and operating profit. Order intake up by 17%, sales by 9%, and a 54% higher operating profit document the rapid growth shown by this motor vehicle and mechanical engineering group. Q2 ROS reached 11.6% (up from 8.2% in Q2/2006). Combined, the figures for the first two quarters (H1) of 2007 underscore the sustained and solid progress achieved, with H1 order intake and sales rising double-digit and the operating profit surging 52%.
Says Håkan Samuelsson, CEO of the MAN Group: “All the MAN Group’s business areas have delivered improved results, in some cases appreciably. The focus of our attention is a continuous improvement of our business processes, an increase in the production volume and in efficiency as well as our international growth. This path we are pursuing unswervingly. For all of 2007, we expect order intake to rise approximately 5%. We will boost our sales by over 10% and the ROS is likely to be just over 10%.”
Order intake: trucks and diesel engines in strong demand
With orders worth €9.6 billion, MAN managed to top its year-earlier H1 figure of €8 billion by 20%. It was especially the diesel engines (up 27%) and trucks (up 23%) that benefited from sustained strong global demand for haulage services in the first half of the year. Whereas truck business gained by as much as 29%, orders booked for buses and coaches shrank by 8%. H1 demand for turbo machinery was just short of the high year-earlier level while at Industrial Services order influx rose 12%. During the period the Group continued in the direction of greater internationalization: H1/2007 orders from Germany mounted 16% to €2.5 billion, from abroad by 21% to €7.1 billion. The predominant factor of this trend was the international orders for trucks whose total value during the period climbed 36% to €4.0 billion.
Sales: Turbo and Commercial Vehicles with double-digit growth rates
The rush of incoming orders and an order backlog which since January 1 has swelled by 20% to a new record of €13.5 billion, are reflected in higher sales.
Whereas Q2 sales rose 9% from €3.2 billion to €3.5 billion, the figure for both quarters combined (H1) is now €6.8 billion, up 12% from the year-earlier €6.0 billion. All the manufacturing areas reported incremental sales: Turbo Machinery and Commercial Vehicles even double-digit at 21% and 14%, respectively,and Commercial Vehicles even double-digit at 21% and 14%, respectively, and Diesel Engines 7%. Sales at Industrial Services did edge down but after allowing for the meantime sold TAKRAF Group, remained unchanged.
Vigorous rise in operating profit, bus business in the red
The Q2 operating profit jumped from €262 million last year to €403 million, including the Scania dividend of €43 million. For 2007 the H1 operating profit surged from €473 million to €721 million. As a consequence, ROS rose from 7.8% to 10.7% in H1/2007. Excluding the Scania dividend, the figure is 10.0% and, for the first time ever in the Group’s history, of double-digit magnitude.
Once more all the business areas revved up their returns. With another gain in business volume and ongoing efficiency campaigns, Commercial Vehicles lifted its operating profit by €136 million from €298 million to €434 million and its ROS from 7.4% to 9.4%. Contrasting with the rapid progress reported by Trucks (ROS rising from 8.0% to 11.1%) is the €13 million H1 operating loss of Buses.
Diesel Engines showed an H1/2007 operating profit of €123 million (up from €101 million) and at 13.1% (up from 11.5%) the most outstanding ROS among the business areas. Working closer to capacity and booking more profitable contracts, Turbo Machinery raised its operating profit from €28 million to €41 million, equivalent to an ROS of 8.5% (up from 7.0%). The operating profit at Industrial Services inched up by €2 million to €53 million, ROS from 8.1% to 9.2%.
Settlement reached in ERF litigation, restructuring for Buses
In Q2 the following factors produced a nonrecurring result that impacted on EBT but not on the operating profit: we orchestrated a restructuring program for Buses after this unit failed by far to attain the target return despite massive efforts, this prompting us to write down the €85 million goodwill from the Neoplan acquisition by a full €65 million. Expected restructuring expenses totaled another €65 million, which we accrued. To this end, talks are being held with the Works Council of the Salzgitter bus plant with the aim of achieving structural improvements to the bus operations.
Secondly, we agreed with Freightliner to settle the year-long ERF litigation against payment of £250 million in damages. Together with further exceptional items, nonrecurring income came to a net €241 million.
The MAN Group’s H1 EBT (including the nonrecurring income) soared from €432 million a year ago to €935 million in 2007, its H1 net income (EAT) surging from €352 million in 2006 to €668 million. Earnings per share (EpS) of continuing operations improved to €4.47 but even excluding the nonrecurring income, hiked up to €3.55 (up from €2.13).
Slight rise in workforce
At June 30, 2007, the MAN Group’s worldwide headcount was 51,225 and thus up by 935 from 50,290 at December 31, 2006. The additional manpower was recruited to cope with rising business in the manufacturing areas and the resulting growth plans. Commercial Vehicles employed an extra 539 persons in connection with the setting-up of the Polish plant and the organization of the Russian sales network. In Germany, the MAN Group had 29,833 employees at June 30, 2007(up from 29,399 at year-end 2006); abroad 21,392 (up from 20,891 at December 31, 2006). As a consequence, 42% were employed outside of Germany. Temporary/loaned labor added up to 3,740 (at June 30, 2007), a 9% rise from the number at December 31, 2006, and necessary to deal with the higher workloads.
- Q2/2007 operating profit: €403 million (up 54%); 6-month (H1): €721 million (up 52%)
- Nonrecurring income of €241 million
- H1 ROS at 10.7% for the first time double-digit (H1/2006: 7.8%), 10% excluding Scania dividend
- Q2 sales up 9% to €3.5 billion; H1 sales rising 12% to €6.8 billion
- Q2 and H1 order intake €4.8 billion (up 17%) and €9.6 billion (up 20%), respectively
- Prospects for all of 2007: sales to climb 10%+, with ROS just above 10%
Order intake, sales and operating profit all advancing
The MAN Group closed Q2/2007 with vigorous gains in order intake, sales, and operating profit. Order intake up by 17%, sales by 9%, and a 54% higher operating profit document the rapid growth shown by this motor vehicle and mechanical engineering group. Q2 ROS reached 11.6% (up from 8.2% in Q2/2006). Combined, the figures for the first two quarters (H1) of 2007 underscore the sustained and solid progress achieved, with H1 order intake and sales rising double-digit and the operating profit surging 52%.
Says Håkan Samuelsson, CEO of the MAN Group: “All the MAN Group’s business areas have delivered improved results, in some cases appreciably. The focus of our attention is a continuous improvement of our business processes, an increase in the production volume and in efficiency as well as our international growth. This path we are pursuing unswervingly. For all of 2007, we expect order intake to rise approximately 5%. We will boost our sales by over 10% and the ROS is likely to be just over 10%.”
Order intake: trucks and diesel engines in strong demand
With orders worth €9.6 billion, MAN managed to top its year-earlier H1 figure of €8 billion by 20%. It was especially the diesel engines (up 27%) and trucks (up 23%) that benefited from sustained strong global demand for haulage services in the first half of the year. Whereas truck business gained by as much as 29%, orders booked for buses and coaches shrank by 8%. H1 demand for turbo machinery was just short of the high year-earlier level while at Industrial Services order influx rose 12%. During the period the Group continued in the direction of greater internationalization: H1/2007 orders from Germany mounted 16% to €2.5 billion, from abroad by 21% to €7.1 billion. The predominant factor of this trend was the international orders for trucks whose total value during the period climbed 36% to €4.0 billion.
Sales: Turbo and Commercial Vehicles with double-digit growth rates
The rush of incoming orders and an order backlog which since January 1 has swelled by 20% to a new record of €13.5 billion, are reflected in higher sales.
Whereas Q2 sales rose 9% from €3.2 billion to €3.5 billion, the figure for both quarters combined (H1) is now €6.8 billion, up 12% from the year-earlier €6.0 billion. All the manufacturing areas reported incremental sales: Turbo Machinery and Commercial Vehicles even double-digit at 21% and 14%, respectively,and Commercial Vehicles even double-digit at 21% and 14%, respectively, and Diesel Engines 7%. Sales at Industrial Services did edge down but after allowing for the meantime sold TAKRAF Group, remained unchanged.
Vigorous rise in operating profit, bus business in the red
The Q2 operating profit jumped from €262 million last year to €403 million, including the Scania dividend of €43 million. For 2007 the H1 operating profit surged from €473 million to €721 million. As a consequence, ROS rose from 7.8% to 10.7% in H1/2007. Excluding the Scania dividend, the figure is 10.0% and, for the first time ever in the Group’s history, of double-digit magnitude.
Once more all the business areas revved up their returns. With another gain in business volume and ongoing efficiency campaigns, Commercial Vehicles lifted its operating profit by €136 million from €298 million to €434 million and its ROS from 7.4% to 9.4%. Contrasting with the rapid progress reported by Trucks (ROS rising from 8.0% to 11.1%) is the €13 million H1 operating loss of Buses.
Diesel Engines showed an H1/2007 operating profit of €123 million (up from €101 million) and at 13.1% (up from 11.5%) the most outstanding ROS among the business areas. Working closer to capacity and booking more profitable contracts, Turbo Machinery raised its operating profit from €28 million to €41 million, equivalent to an ROS of 8.5% (up from 7.0%). The operating profit at Industrial Services inched up by €2 million to €53 million, ROS from 8.1% to 9.2%.
Settlement reached in ERF litigation, restructuring for Buses
In Q2 the following factors produced a nonrecurring result that impacted on EBT but not on the operating profit: we orchestrated a restructuring program for Buses after this unit failed by far to attain the target return despite massive efforts, this prompting us to write down the €85 million goodwill from the Neoplan acquisition by a full €65 million. Expected restructuring expenses totaled another €65 million, which we accrued. To this end, talks are being held with the Works Council of the Salzgitter bus plant with the aim of achieving structural improvements to the bus operations.
Secondly, we agreed with Freightliner to settle the year-long ERF litigation against payment of £250 million in damages. Together with further exceptional items, nonrecurring income came to a net €241 million.
The MAN Group’s H1 EBT (including the nonrecurring income) soared from €432 million a year ago to €935 million in 2007, its H1 net income (EAT) surging from €352 million in 2006 to €668 million. Earnings per share (EpS) of continuing operations improved to €4.47 but even excluding the nonrecurring income, hiked up to €3.55 (up from €2.13).
Slight rise in workforce
At June 30, 2007, the MAN Group’s worldwide headcount was 51,225 and thus up by 935 from 50,290 at December 31, 2006. The additional manpower was recruited to cope with rising business in the manufacturing areas and the resulting growth plans. Commercial Vehicles employed an extra 539 persons in connection with the setting-up of the Polish plant and the organization of the Russian sales network. In Germany, the MAN Group had 29,833 employees at June 30, 2007(up from 29,399 at year-end 2006); abroad 21,392 (up from 20,891 at December 31, 2006). As a consequence, 42% were employed outside of Germany. Temporary/loaned labor added up to 3,740 (at June 30, 2007), a 9% rise from the number at December 31, 2006, and necessary to deal with the higher workloads.
