MAN Group in the second quarter of 2005: continued strong growth in earnings
2005-08-11
Following a record order intake in the first quarter of 2005, the MAN Group recorded sustained growth during the second quarter. Compared with the second quarter of 2004, the order intake rose by 14% to EUR4.6 billion. The cumulated figure of EUR10.0 billion for the first two quarters exceeded the level of incoming orders over the same period of 2004 by 30%. In the case of ongoing operations, excluding major orders, the MAN Group recorded an 8% increase in orders compared with the first half of 2004.
In the second quarter of 2005, sales reached EUR3.8 billion, 2% more than the figure for the same quarter of 2004. Over this period all four manufacturing divisions recorded an increase of more than 5% in sales. For the first six months of 2005, the MAN Group recorded a 6% rise in sales to EUR7.0 billion, with all five divisions reporting increased sales over this period.
The operating profit reported by the MAN Group increased by EUR48 million to EUR180 million during the second quarter. On a cumulated basis, the MAN Group generated an operating profit of EUR285 million for the first six months, an increase of EUR90 million. Closure of the production plant for sheet-fed printing presses in Geisenheim resulted in additional expenditure of EUR24 million which, being an extraordinary transaction, is not reflected in the operating profit.
The MAN Group was able to improve its pre-tax earnings by EUR22 million to EUR131 million during the second quarter, giving rise to a cumulated increase of EUR68 million to EUR213 million. After taxes, earnings in the second quarter increased from EUR73 million to EUR97 million, while earnings per share rose from EUR0.48 to EUR0.65. Over the first six months, the MAN Group generated after-tax earnings of EUR153 million (EUR99 million), which was equivalent to earnings per share of EUR1.02 (EUR0.64).
In view of the positive first and second-quarter performances, we are confident that the MAN Group can increase its order intake to some EUR17.5 billion in 2005 (2004: EUR15.6 billion). We anticipate that sales will increase to a figure in the order of EUR15 billion, after EUR14.5 billion in 2004. Compared with 2004, a substantial rise in operating profit is expected for the MAN Group, with Commercial Vehicles making the main contribution based on its anticipated sales growth and the impact of other rationalization measures. All in all, in the absence of any negative economic surprises, the operating profit of the MAN Group will well exceed EUR700 million (2004: EUR566 million).
MAN Aktiengesellschaft
The Executive Board