MAN Middle East Registers Strong Momentum in Q1 2014 with 40 % Sales Increase
Saif Bin Darwish order for 150 heavy trucks worth more than 10 million Euros contributes to significant sales growth MAN Group posted operating profit of €68 million in the first quarter of 2014
MAN Truck & Bus Middle East closed the first quarter of fiscal 2014 with sustained growth in customer demand from the Middle East to register a 40% increase in sales for the truck segment. The positive sales performance comes on the back of improved customer confidence with the transport sector becoming a key driver of economic growth to support ongoing economic activities and infrastructure development across the region. Order intake for the quarter also increased by 27% giving a good outlook for the rest of the year.
Currently, the Middle East contributes 9.3% of the global sales volume of trucks (in units) compared to 6.1% in 2013. The region also contributes 7.8% of the global order intake volume of trucks (in units) compared to 6% in 2013. These figures emphasize the growing significance of Middle East operations for the MAN Group
According to David Van Graan, Head of MAN Center Middle East and Vice President Sales and Marketing: “We are very pleased to report a robust performance for MAN in the Middle East for Q1 2014. In March, we recorded the highest sales since 2008, which is a clear indicator for the recovery of major economies in the Gulf such as UAE, Qatar, Oman and Saudi Arabia. Our team across the region has performed admirably and our customers have appreciated the innovative and diverse product range & services that MAN delivers. We have consistently maintained a proactive environment of close cooperation and constant communication with our customers which have enabled us to be a true transportation partner in order to ensure their success.”
Marking a strong start to 2014, MAN’s solid performance was also boosted by major orders. UAE based Construction Company Saif Bin Darwish took delivery of 150 heavy MAN TGS WW 40.440 6x4 tractor heads in March 2014. The order represents a volume of more than 10 million Euros. Saif Bin Darwish is one of the major Civil & Infrastructure Engineering Companies in UAE and it has a long relationship in working with MAN.
Q1 2014 Global Results Analysis
The MAN Group’s sales revenue declined by 13% in the first three months of 2014 to €3.1 billion. The MAN Group’s order intake in the first quarter of the current fiscal year was €3.7 billion, down slightly on the previous year. MAN posted a clear operating profit of €68 million in the first quarter of 2014. The Management is expecting slightly stronger global economic growth in 2014 compared with the previous year and is cautiously optimistic about fiscal year 2014.
MAN Truck & Bus recorded sales revenue of €1.8 billion while order intake was up 3% on the prior-year quarter, at €2.3 billion. This was boosted by the improved economic environment in Europe and a number of major orders. However, the European market continued to be dominated by pull-forward effects from the introduction of the Euro 6 emission standard.
The Power Engineering business area recorded a higher order intake. At €0.9 billion, this represents an increase of 7% compared with the period from January to March. 2013. MAN Diesel & Turbo’s orders rose by approximately €60 million to €0.8 billion. The increase was attributable to the marine business unit, which saw a slight market recovery. The Power Plants strategic business unit also recorded a higher order intake. This offset the significant decreases in the Turbomachinery strategic business unit – an advantage of our broad-based focus.