MAN is the third European truckmaker to beat first quarter expectations, pointing to a wider recovery in the sector. First-quarter operating profit more than doubled to EUR325m (US$481.3m), it said on Tuesday, beating the EUR307m estimated by analysts.
“The recovery on the European commercial vehicles market is proving to be sustained and is being driven by both domestic and foreign demand,” MAN said in a statement.
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Volvo and Scania also posted forecast-beating operating margins last week, underscoring the sharp rebound in the global market. Figures from ACEA, the European industry association, show new commercial vehicle registrations in the EU rose 14.7% year on year.
While much of the global growth has come from Asia and Latin America, there is also growth in the mature markets of North America and Europe.
MAN says that it will increase production capacity in Brazil from 72,000 to 82,000 vehicles. The company is forecasting that revenue will grow 7-10% this year with at least a 1% improvement on return on sales on the back of higher capacity utilisation.
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