FRANKFURT, June 4 German truck maker MAN
warned that its return on sales would shrink
significantly this year due to additional provisions and a slump
in after-sales business at its Diesel & Turbo business as well
as new tax risks.
Volkswagen owned MAN had already warned in April
that its earnings would be hit as it set aside 140 million euros
($182.4 million) to cover possible risks related to a large
order to construct turnkey diesel power plants.
It said on Tuesday it was taking additional provisions of
146 million euros in the second quarter following a final report
from an auditing firm mandated to analyse the project's risks.
($1 = 0.7675 euros)
(Reporting by Maria Sheahan; Editing by Peter Dinkloh)