European truck maker MAN SE’s second-quarter profit fell 67% on higher costs and declining truck demand, Bloomberg News reported Tuesday.
Operating profit fell to about $95 million from about $290 million a year earlier. Revenue rose 3.6% to $5.3 billion, while orders edged up 0.6%. Munich, Germany-based MAN reports its earnings in euros.
MAN, a unit of Volkswagen AG, has scaled back its production as companies hold off on vehicle purchases amid recessions in Europe, Bloomberg reported.
VW — which owns 75.03% of MAN’s voting rights — has made an initial offer to MAN shareholders as part of its bid for full control. Investors who don’t accept a cash offer will receive a guaranteed annual dividend of 3.07 euros (about $4) per share.
Volkswagen rearranged its truck operations’ management last year after a six-year effort to get MAN and Sweden-based truck manufacturer Scania to work together, Bloomberg reported.