Truck builder MAN SE reported higher earnings and sales for 2017 as order intake increased in both of the company's commercial vehicles and power engineering businesses.
The company reported profit attributable to shareholders of €311 million, or €2.12 per share, for full year 2017, compared with a loss of €18 million, or 12 euro cents per share, in 2016.
Order intake increased 12% to €16.06 billion in 2017 from €14.36 billion in the previous year, with positive contributions from both the commercial vehicles and power engineering businesses. The power engineering business recorded 13% growth in order intake and 14% more commercial vehicles.
Sales revenue rose 6% year over year to €14.34 billion from €13.56 billion as tangible growth in commercial vehicles revenue more than offset a decline in power engineering business.
Operating profit increased to €566 million from €204 million, driven by higher sales revenue growth at MAN Truck & Bus business.
The company's commercial vehicles business benefited from largely positive demand for trucks, vans and buses. The MAN Truck & Bus business posted higher operating profit and sales revenue than the previous year and MAN Latin America reported a lower operating loss and higher sales revenue in 2017.
In power engineering, the MAN Diesel & Turbo business posted an operating profit, compared to an operating loss in the prior year, but sales revenue decreased year over year. Operating profit and sales revenue at the Renk propulsion systems business declined from a year ago.
MAN expects sales revenue to grow slightly and operating profit to remain roughly flat in 2018. Unit sales in the commercial vehicles business are expected to increase moderately and order intake in the power engineering business is projected to remain flat year over year.