MAN SE targets "significant profit boost" through 2017 from cost cuts
MUNICH, March 11 (Reuters) - German truck maker MAN SE is targeting a "significant profit boost" through 2017 from accelerating cost reductions in all areas of its business, the company said on Wednesday.
MAN has been in talks with labour representatives on cutting production capacity at its core truck and bus division as truck demand in key markets has been falling, sources told Reuters last month.
Besides "optimizing" its production network, steps to increase profit include cutting material costs by improving purchasing with parent Volkswagen and deepening development with VW and Swedish truck subsidiary Scania, MAN said in a presentation released at its earnings press conference in Munich.
"The management board has intensified programmes to boost efficiency and cut cost in all areas given the tense market situation," said MAN, which also makes diesel engines and turbines. (Reporting by Andreas Cremer; Editing by Kirsti Knolle)
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