Shipping crisis hits MAN engine sales

02 May 2013
MAN has seen a decline in demand for marine diesel engines and turbo-machinery in the first quarter

MAN has seen a decline in demand for marine diesel engines and turbo-machinery in the first quarter

The ongoing shipping crisis in many European countries has been a factor in the significant decline in demand for merchant ship engines from German concern MAN in the first quarter of this year, reports Tom Todd.

As MAN CEO Georg Pachta-Reyhofen put it in his Q1 report “even the Power Engineering business area, which made a stabilising contribution to the Group’s earnings, saw a decline in demand for marine diesel engines and turbo-machinery."

Michael Melzer, a spokesman for Augsburg-based MAN Diesel & Turbo, told The Motorship that profit in the Engines & Marine Systems sector was €21m in the first three months of this year, compared to €90m in the same period of 2012.

Although there was no loss and a profit had still been made in the sector, the figures “illustrate nonetheless the ongoing weakness in the shipping sector, which remains burdened by merchant fleet overcapacity”, Mr Melzer said.

In its Q1 report, the MAN Group acknowledged that the latest results represented “a difficult start to a challenging year”. Order intake value was down 14% from €4.4 to €3.7bn, revenue by 8% from €3.8 to €3.5bn and an operating profit of €254m in the first quarter of 2012 had become a loss of €82m in the first quarter of this year.

In other marine related figures, the report noted however that MAN Group subsidiary RENK, one of the world’s foremost builders of propulsion components and naval gear units, had increased its turnover in Q1 by 17% to €123m.

Looking ahead, Mr Pachta-Reyhofen said economic conditions remained difficult and noted that the past year had brought “major challenges for MAN”. He predicted that “economic conditions will remain difficult in fiscal 2013 and that no significant recovery could be expected.

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