MAN today said fourth quarter operating profit was €354 million, up from €225 million a year earlier and beating expectations.
The consensus expectations for fourth quarter operating profit was €324 million.
Fourth quarter sales reached €3.882 billion, beating the consensus of 3.721 billion, while net profit rose 45 per cent to €248 million, also above the forecast €222 million.
Sales at MAN rose 13 per cent due to surging demand for transport services and rising energy requirements.
For the full year, operating profit was €1.105 billion, up from €674 million and in line with the company's own target of posting more than €1 billion.
It forecasts 2007 return on sales of 9 per cent, with the commercial vehicles business in particular pressing ahead with cost-cutting plans. Return on sales in 2006 was at 8.5 per cent, up from 5.9 per cent in 2005.
The company proposed to pay a dividend of €1.50 per share from €1.35 the year earlier. It also will pay a bonus dividend of €0.50 per share.