MAN SE / Key word(s): Forecast
Munich, October 28, 2020 - After MAN SE was forced to retract its Report on Expected Developments for fiscal year 2020 on March 24, 2020, as a result of the COVID-19 pandemic, its drastic effects on the economy, and the associated high level of uncertainty, the Executive Board of MAN SE has today issued a new forecast for the MAN Group for fiscal year 2020. Due to a market environment that remains very difficult as a result of the pandemic, the following statements are subject to no further significant restrictions to general business activity that may have an impact on MAN's unit sales, production, and supply chains being introduced in connection with COVID-19:
The Executive Board of MAN SE is anticipating a substantial decline in the MAN Group's sales revenue in fiscal year 2020 compared with the previous year. The MAN Group's operating loss is expected to be between €550 million and €750 million, causing the operating return on sales to deteriorate drastically compared with the previous year.
Unit sales at MAN Truck & Bus are expected to decline sharply, with sales revenue down substantially on the prior-year figure. In spite of efforts to reduce costs, an operating loss of between €450 million and €650 million is expected.
The reason for the ranges given lies in the risk of renewed substantial restrictions on economic activity as a result of rising COVID-19 cases until the end of 2020. In addition, this expectation is based on the effects of the sharp decline in unit sales accompanied by a temporary production stop, the decrease in the After Sales business, a negative impact on the used vehicle business, as well as costs related to the introduction of the new truck generation at MAN Truck & Bus.
Unit sales at MAN Latin America will decline substantially, with a very sharp decrease in sales revenue. An operating loss is also expected for this segment, resulting in a sharp deterioration in the operating return on sales.
The projected operating loss and operating return on sales do not contain any expenses for the realignment of MAN Truck & Bus announced on September 11, 2020. Due to the ongoing nature of the negotiations with the employee representatives, it is not possible to predict the timing and amount of these expenses at this point in time.
Dr. Martin Gstaltmeyr
28-Oct-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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