Natural Gas Is the Fuel of the Future Believes MAN
2013 was a difficult fiscal year for MAN, but Volkswagen Group has announced that the first quarter of 2014 has been a good one, and MAN is on a positive march up. Many of the markets that concern the company are in a slight economic recovery, Dr. Georg Pachta-Reyhofen, Chief Executive Officer of MAN SE, explained. And, while the full-year sales revenue may be somewhat down, he admitted, Pachta-Reyhofen also is confident that the company will see a significant increase in operating profit.
Shareholders are no doubt glad to hear that there is light at the other end of the profit margin. Against the backdrop of a difficult fiscal 2013 with a loss after tax of €513 million, the Executive and Supervisory Boards are proposing a dividend of 14 cents per share to the Annual General Meeting. However, free float shareholders will also receive the guaranteed dividend of €3.07 per common and preferred share laid down in the domination and profit and loss transfer agreement with Truck & Bus GmbH, Wolfsburg, in any case. “There is many an indication that the dark clouds in the sky will clear a little at least. We are cautiously optimistic about the fiscal year, even if we are somewhat removed from bright sunshine,” said Pachta-Reyhofen.
Pachta-Rehofen did add that one challenge was the Brazilian commercial vehicles market – which is key for MAN. At MAN Latin America, there was a clear decrease in orders received and unfavorable exchange rate effects also had a significant impact on the figures. By contrast, the economic environment improved. The CEO went on to say that the market was still dominated by a pull-forward effect from the introduction of the Euro 6 emission standard on January 1, 2014. The overall view at MAN is optimistic, however. “2013 was a year of highlights and lowlights. However, one thing was very clear: if the economic conditions are right and we can play all our trump cards, we are successful,” said Pachta-Reyhofen. He explained that in addition to committed employees and excellent market positions, this was primarily due to reliable and innovative products.