Germany: MAN Group’s net income rises 32% in first nine months

MAN Group says its net sales for the first nine months of 2007 rose 12% year-on-year to €10.28bn (US$14.88bn), thanks to a sharp increase in order intake and order backlog.

Sales from Germany contributed €2.55bn to the total sales (up 7%) during the period, while sales from overseas operations accounted for €7.73bn (up 14%).

Order intake for the period stood at €14.3bn (up 19% year-on-year). Of this, the company’s German operations accounted for €3.69bn (up 16% year-on-year) and overseas operations for €10.61bn (up 20%). Order backlog, as of 30 September 2007, stood at €14.52bn, up 28% year-on-year.

MAN chief executive officer Hakan Samuelsson, said, "2007 will be an outstanding period for the MAN Group. It is growing at a double-digit rate; we have once more upgraded our profitability and created new jobs."

Operating profit for the nine-month period rose to €1.099bn from €751m a year ago, while return on sales for the period was 10.7%, compared with 8.2% a year earlier.

Net earnings for the first three quarters increased by 32% to €894m from €677m a year ago.

The company notes that all business areas contributed to the growth during the first nine months of 2007. The Commercial Vehicles division contributed €646m (up 36%) in operating income, thanks to high capacity utilisation at plants and servicing outlets and repeated efficiency measures. Net sales from the division rose 11% year-on-year to €6.8bn during the first three quarters.

Operating profit at the Diesel Engines business was up 33% at €209m, while net sales increased by 15% year-on-year to €1.51bn.

With high capacity utilisation and improved margins, Turbo Machinery increased its operating profit by 46% to €67m. Net sales for the period rose 27% year-on-year to €766m.

Operating profit at the Industrial Services division amounted to €97m, an increase of 26% year-on-year, mainly due to invoice timing factors. Net sales were €963m, up 3% year-on-year.

For the first half of 2007, the company’s sales increased by 12% year-on-year to €3.51bn. Sales in Germany rose 6% to €874m, while sales for overseas operations were up by 15% to €2.64bn. Order intake increased by 17% to €4.7bn during the third quarter.

The OEM’s operating income rose 36% (year-on-year) during the period to €378m from €278m a year ago, while return on sales was 10.7%, compared with 8.9% a year earlier. Earnings before tax increased to €370bn from €275bn a year ago.

Earnings after taxes, however, fell to €226m from €325m a year ago, while earnings per share stood at €1.51, excluding non recurring results.

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