German truck and bus manufacturer MAN increased sales revenue by 1 billion euros for the 2018 financial year.
Sales revenue grew 9% to €12.1bn for the period compared to €11.1bn in 2017.
The company’s order intake increased 12% to €13.9bn compared to €12.4 the previous period.
However, there was a decline in operating profit, down to €332m compared to €358m in 2017.
MAN saw a rise in demand from the European truck market, in particular Germany, France, Poland and Italy. However, there was a moderate decline in the United Kingdom.
Outside Europe, the market decreased slightly as was the case in Turkey.
The Russian truck market deteriorated during the course of the year and only recorded minimal year-on-year growth.
The European bus market saw positive development in 2018 with order intake and sales revenue of MAN Truck & Bus up significantly on the prior year.
Unit sales for trucks was up 14% on the prior year figure at 95,352 vehicles. This figure also includes 7871 MAN TGE vans.
Unit sales for buses also rose by 14%, with 7204 MAN and Neoplan buses and coaches sold in 2018.
The company also saw positive development in South America during 2018 after years of losses. MAN maintaining a leading position in the Brazilian market for trucks weighing five tons and over and in the bus segment.
Buoyed by the country’s economic recovery, the Brazilian commercial vehicles market grew considerably in the reporting period.
Government investment in a new school bus programme also made a contribution to this development. MAN’s South American order intake and sales revenue in 2018 was significantly higher than in the previous year.
Overall sales revenue was offset by higher expenses for new products and markets and the intense competition, the company reports.
Considerable expenses were required to restructure the activities in India.
Adjusted for these items, MAN Truck & Bus’s operating profit was around the same level as the previous year.
The company beat the projected targets in terms of unit sales and sales revenue, but profit was far below strategic targets, the company says.
MAN SE chief executive Joachim Drees says improved market share in Europe and significant growth in Brazil was “encouraging”.
“Higher sales volumes had a positive impact on earnings. At the same time, however, we had to face the restructuring of our business in India, made necessary by our decision to focus on issues of the future.
“To ensure future growth and attain profitability goals, it is essential to achieve continuous improvements and operational excellence. In addition, our investments are at a high level – as part of this process, we subject all projects to a critical review and set clear priorities for essential research and development activities,” Drees says.
A key driver of the company’s future success is in its collaboration project with Scania to develop core power train components. Engines, transmissions, axles, and exhaust after-treatment systems are being created on common platforms that are then adapted by the individual brands.
