German truck maker MAN aims to boost China sales by 40%
Feb. 18, 2010 (China Knowledge) - Germany-based truck manufacturer MAN SE hopes to see its heavy-duty truck sales in China increase by 40% in 2010 and to grow its market share in the country's premium heavy truck market in the next few years, the China Daily reported, citing the company president as saying.
MAN last year accounted for 75% of the 5,000 heavy-duty trucks imported and sold in China, and the good sales performance boosted its market share in the country, said the English-language newspaper.
Because there is immense untapped potential, the company is confident that it can grow its market share in China even more in the next few years, said Benny Lim, president of MAN Truck and Bus (China) Ltd.
In October, MAN bought a 25% stake in Sinotruk (Hong Kong) Ltd<3808>, the Hong Kong-listed arm of China's largest heavy truck manufacturer, China National Heavy Duty Truck Group.
The deal was intended to extend MAN's presence outside its core European market, especially in the BRIC countries, Brazil, Russia, India and China, where demand for transportation may grow in the long term along with a revival in economy, China Knowledge reported earlier.
Commercial Vehicle Group Announces Fourth Quarter and Full Year 2009 Operating Results
NEW ALBANY, Ohio, Feb. 17 /PRNewswire-FirstCall/ -- Commercial Vehicle Group, Inc. (Nasdaq: CVGI) today reported revenues of $135.7 million for the fourth quarter, compared to $164.4 million for the prior year period. Operating loss for the fourth quarter was ($41.2) million and net loss was ($23.7) million, or ($1.08) per diluted share, for the same period. Fully diluted shares outstanding for the quarter were 22.0 million. Included in the Company's results is a non-cash expense of approximately $37.0 million related to the impairment of certain tangible and intangible assets. The Company also recorded restructuring charges of approximately $1.5 million relating to the closure and consolidation of one of its facilities located in Liberec, Czech Republic and approximately $0.2 million of employee related expenses for the closure of its Norwalk, Ohio truck cab assembly facility.
The Company also reported a tax benefit of approximately $17.4 million during the fourth quarter and $16.3 million for the year ending December 31, 2009. The Company remains subject to ongoing valuation allowances required under ASC 740; however, the benefit recorded during the period is primarily attributable to tax legislation passed during the fourth quarter 2009 allowing for the Company's 2009 tax losses to be carried back for a period of five years. The Company estimates it will receive a tax refund as a result of this legislation in the range of $18 to $21 million during the second quarter of 2010.
"Our fourth quarter was fairly strong in comparison to the first three quarters of 2009. Excluding the non-cash impairments and restructuring charges, our operating performance was essentially flat to the fourth quarter of 2008 with substantially less revenues," said Mervin Dunn, President and Chief Executive Officer of Commercial Vehicle Group. "This is due in large part to the cost cutting measures and manufacturing realignment actions we took throughout the year, and we are optimistic about the continued impact of these actions into 2010 and beyond," added Mr. Dunn.
Revenues for the quarter compared to the prior-year period decreased by approximately $28.7 million, due primarily to the decrease in both the North American Class 8 heavy truck market and the global construction market. Operating loss for the fourth quarter of 2009 was ($41.2) million compared to ($209.7) million for the prior year period. Operating loss for the fourth quarter of 2009 included $37.0 million of charges related to the impairment of certain tangible and intangible assets and $1.7 million of restructuring charges. Operating loss for the prior year quarter included $207.5 million of charges related to the intangible asset impairment for the prior year period. Excluding the non-cash impairments and restructuring charges, the Company's operating loss for the fourth quarter increased approximately $0.4 million compared to the prior year period on $28.7 million less revenues. Net loss for the quarter ended December 31, 2009, was ($23.7) million, or ($1.08) per diluted share, compared to net loss of ($207.7) million, or ($9.57) per diluted share, in the prior year period.
Revenues for the year ended December 31, 2009 compared to the prior-year period decreased by approximately $304.9 million, due primarily to the decrease in the North American Class 8 heavy truck market, the global construction market and general global economic conditions in many of the Company's key end markets. Operating loss for the twelve-month period was ($89.7) million compared to ($191.4) million last year. Net loss for the twelve-month period was ($81.5) million, or ($3.74) per diluted share, compared to net loss of ($206.8) million, or ($9.58) per diluted share, in the prior twelve-month period. Included in the Company's full-year results for 2009 and 2008 are non-cash expenses of approximately $47.4 million and $207.5 million, respectively, related to the impairment of certain tangible and intangible assets. Also included in the Company's twelve-month results for 2009 are restructuring charges of approximately $3.7 million.
Net debt (calculated as total debt less cash and cash equivalents) was $151.2 million at December 31, 2009, as compared to $157.6 million at December 31, 2008. The Company did not have any outstanding borrowings under its asset-based revolver at December 31, 2009 and, as a result, was not subject to any financial maintenance covenants as of December 31, 2009. The Company does not expect to trigger the requirement to comply with financial maintenance covenants in 2010 under the revised debt structure which was put into place in August 2009.
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