MAN AG (MAGOF.PK) announced the company expects total 2013 return on sales to be significantly below the 2012 figure, whereas revenue will remain at the previous year's level.
MAN AG said contractual risks in connection with a large order of MAN Diesel & Turbo SE for the construction of turn-key diesel power plants led to an additional need for provisions for the second quarter in the amount of 146 million euros.
The Group said, in the current fiscal year, there has also been a significant downturn in the after-sales business of MAN Diesel & Turbo SE, which was not expected to this degree. The situation in the after-sales business of MAN Diesel & Turbo SE is expected to remain tensed in the next years and the original profit expectations will not be fulfilled in the mid-term.
MAN AG also said substantial tax risks have arisen for the assessment periods 2004 through 2006 in the course of an external tax audit with a company which formerly was part of the consolidated tax group.
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