MAN counting on growth in BRIC countries
Dividend proposal reflects continuous share of the profits
MAN SE is to continue the growth strategy that it has already initiated, focusing on the markets of transportation, energy and green technology. “All these markets offer MAN excellent growth potential worldwide,” said Dr. Georg Pachta-Reyhofen, CEO of MAN SE, at the MAN SE Annual General Meeting today in Munich. The BRIC countries will continue to take center stage. “MAN is staying on the BRIC growth track which is just starting to bear fruit; Brazil is an excellent example of this,” emphasized Pachta-Reyhofen. He announced that MAN would be launching a new truck brand for Asia in 2010 together with partner Sinotruk and that the first few mass-produced hybrid city buses would also be delivered this year.
In 2009, MAN took key strategic measures to continue the international focus, such as the strategic partnership with Chinese commercial vehicle manufacturer Sinotruk, the integration of the new Brazilian commercial vehicle subsidiary MAN Latin America and the joint venture for armored vehicles with Rheinmetall AG. The merger of the Diesel and Turbo activities to become MAN Diesel & Turbo was entered in the Commercial Register at the end of March 2010.
Pachta-Reyhofen explained that MAN would work hard in 2010 to implement these strategic decisions by means of global product and production concepts, achieving success through growth and synergies. The Commercial Vehicles and Power Engineering pillars that make up the MAN Group’s clear corporate structure will provide the basis for this.
MAN generated an operating profit of half a billion euro in 2009. Even operations in the Commercial Vehicles business area were profitable. “A respectable level under the circumstances,” emphasized Pachta-Reyhofen.
Business at MAN Nutzfahrzeuge is expected to continue at the current level in 2010. The CEO announced that there would be further measures to boost efficiency, cut costs in the long term and positively manage cash flow. Business performance at MAN Latin America is likely to be pleasing once again.
Revenue is expected to fall moderately at MAN Diesel & Turbo in 2010 in the Power Engineering business area. However, return on sales (ROS) is also set to exceed the current target of 8.5% again.
The Executive and Supervisory Boards proposed to MAN’s shareholders that a dividend of 25 cents per share be distributed. This payment appropriately reflects the economic realities facing MAN and the environment in which it operates. At the same time, this ensures a continuous share of the profits, even when times are difficult.