MAN first quarter results

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Lower order intake and squeezed margins have affected MAN’s Q1 performance with group figures 14% below last year and the commercial vehicle division down by 12%. The 2013 order intake stands at €2.963bn against last year’s €3.385bn. Economic growth in the German GD is expected to be no more than 0.6% while other Eurozone countries will see no growth or negative growth.

Other markets which had been successful, such as Latin America, shrank due to their reluctance to pay for Euro 5 technology and came under increased pressure from competition. The sector is expected to improve as creation of the infrastructure required for supporting major sporting events fuels demand for new vehicles. Prospects remain good in China with predicted growth of 8%, in India – 6.5% and in Russia which is expected to achieve 3%.

MAN Truck & Bus reported an operating loss of €23m for the period against a profit of €68m in 2012. The return on sales fell from 3.3% in 2013 to -1.2%.