MAN Finance has reported a pre-tax loss of €7 million in the first quarter of 2009, significantly down from the previous year’s profit of €2 million.
According to the manufacturer’s quarterly report, its financial services unit recorded a total operating loss of €6 million “as a result of higher funding costs and risk provisions”.
The losses are despite total income from MAN’s financial services unit rising from €37 million to €46 million in 2009. In total, MAN Finance contributed €2 million to MAN Group’s operating activity cash flow.
More analysis and comment on MAN Finance will appear in the next issue of Leasing Life (June issue).
Jason T Hesse