German bus and truckmaker MAN SE lost (EURO)472 million ($642 million) in the fourth quarter of 2009 amid a steep drop in demand due to the economic downturn, the company said Monday.
Munich-based MAN said the loss compared with net income of (EURO)177 million in the fourth quarter of 2008.
Revenue for the October-December period fell 18 percent to (EURO)3.3 billion from nearly (EURO)4 billion in the fourth quarter of 2008.
MAN said revenue for the quarter and the full year fell "due to the massive decline in demand in the transportation sector in particular."
Despite the decline, fourth-quarter order intake increased 35 percent to (EURO)2.6 billion from almost (EURO)2 billion in the fourth quarter of 2008. Orders for the full year were 30 percent lower at nearly (EURO)10 billion from (EURO)14 billion in 2008.
The company said it expects its bus and truck business to remain at the current lower level in 2010.
The power engineering business, which will soon merge MAN Diesel and MAN Turbo together, should see a moderate decline in revenue, the company said. MAN Diesel makes large motors for ships and power plants, while MAN Turbo makes compressors, gas and steam turbines.
The merger of the two divisions should contribute about (EURO)60 million in cost savings.
For the full year, MAN lost (EURO)258 million compared with net income of (EURO)1.2 billion in 2008, the company said. Revenue for 2009 was 20 percent lower at (EURO)12 billion, compared with nearly (EURO)15 billion in 2008.
MAN is Germany's second largest truck builder after Daimler AG. MAN is about 30 percent held by Europe's largest automotive group, Volkswagen AG.
Shares of MAN were 1 percent lower at (EURO)49.50 in Frankfurt morning trading.
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