MAN Diesel expects sales dip.
MAN Diesel expects sales to fall considerably this year due to the collapse of newbuilding orders.
However, the engine manufacturer still expects return on sales to remain above the MAN group target of 8.5%.
In 2009, MAN Diesel recorded new orders worth ?1.9bn ($2.6bn), down from ?3.1bn a year earlier. The figure included applications other than marine engines. For two-stroke engines alone, the number of orders fell by 80% year-on-year, parent MAN said.
MAN Diesel"s share of the two-stroke market is above 80%, MAN said.
MAN Diesel"s order backlog stands at ?3bn. Sales reached ?2.4bn, down 5%, and operating profit amounted to ?342m, down from ?390m.
The group reaffirmed that it is going to merge its diesel and turbo divisions this year. This should release considerable savings, MAN said. It would also be easier to offer product packages, such as exhaust heat recovery systems for marine applications.