DGAP-Adhoc: MAN SE: Increasingly difficult market environment weighs profitability down

MAN SE  / Key word(s): Half Year Results

25.07.2012 17:41

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The MAN Group's order intake in the first half of 2012 was EUR8.3 billion
(previous year: EUR8.8 billion). The Commercial Vehicles business area
recorded an order intake of EUR6.5 billion in the first six months, which
was roughly on a level with the prior-year period (EUR6.6 billion).

The MAN Group's revenue in the first six months decreased by 3%
year-on-year to EUR7.7 billion. The Commercial Vehicles business area
generated revenue of EUR5.8 billion (previous year: EUR6.1 billion).

The MAN Group posted an operating profit of EUR471 million in H1/2012
compared with EUR762 million in the previous year. The decrease is
primarily attributable to the Commercial Vehicles business area, which saw
its operating profit fall to EUR211 million (previous year: EUR475
million).

The MAN Group's return on sales after the first two quarters was 6.1%
(previous year: 9.6%). The return on sales for the Commercial Vehicles
business area dropped clearly to 3.6% (previous year: 7.8%).

The MAN Group's earnings before tax amounted to EUR70 million in the first
six months (previous year: EUR1,154 million). This includes the earnings
effect from the impairment loss recognized on the investment in Sinotruk
Ltd., Hong Kong/China in the amount of EUR190 million. The comparative
prior-year period includes the nonrecurring earnings effect from the
remeasurement of the investment in Scania (EUR495 million).
Net income in the reporting period amounted to EUR40 million, compared with
EUR854 million in the previous year. Earnings per share from continuing
operations were EUR0.24 as against EUR5.78 in the prior-year period.

The MAN Group's outlook for 2012 is as follows:
In the Commercial Vehicles business area, MAN continues to expect a slight
decrease in revenue of up to 5% in 2012, while the European commercial
vehicles market is expected to contract by 5 to 10%. These market
weaknesses are set to be further cushioned with higher revenues in Russia
and other regions outside of Europe among other things. Profitability will,
however, be weighed down by changes to the country and product mix, high
pressure on margins, and increased costs. The introduction of the Euro V
emission standard, worsening economic conditions, and tougher financing
conditions will dampen MAN Latin America's revenue and earnings.
Nevertheless, the region will continue to make a positive contribution to
profitability. Overall, MAN is expecting the Commercial Vehicles business
area to generate a return on sales of around 4% in the current year.

In the Power Engineering business area, MAN believes that the medium- and
long-term growth trends in the energy and industrial markets are robust and
remain intact. For the current fiscal year, MAN continues to expect revenue
growth of around 5% as against fiscal 2011. The return on sales will remain
clearly in double digits, on a level with the previous year.

MAN therefore continues to expect a slight decline in revenue for the Group
as a whole. The return on sales will decrease to approximately 6%, assuming
that the macroeconomic environment does not deteriorate any further.

The information above is subject to the discussion with the Audit Committee
of the Supervisory Board.

The half-yearly report will be published on July 31, 2012. The half-yearly
press conference and the conference call for analysts and investors will
also take place on July 31, 2012.

MAN SE 
The Executive Board


25.07.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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Language:     English
Company:      MAN SE
              Ungererstraße 69
              80805  München
              Germany
Phone:        +49 (0)89 360 98-334
Fax:          +49 (0)89 360 98-572
E-mail:       investor.relations@man.eu
Internet:     www.man.eu
ISIN:         DE0005937007
WKN:          593700
Listed:       Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
              Standard), Hamburg, Hannover, München, Stuttgart; Terminbörse
              EUREX
 
End of Announcement                             DGAP News-Service
 
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