* MAN has 170 mln euros of restructuring costs in Q2
* Q2 19 mln euro operating loss vs 154 mln profit year-ago
* MAN lowers group, truck division FY guidance (Adds peer comparison, CEO comment and detail)
MUNICH, July 28 (Reuters) - German truck maker MAN SE cut its profit and sales expectations for this year after posting a second-quarter loss due to restructuring costs and plunging demand in Brazil.
The Volkswagen-owned manufacturer last month announced plans to cut 1,800 jobs at its main trucks division in Europe as part of the parent company’s efforts to slim down the unit and revive profit.
MAN is more exposed than rivals Daimler and Volvo to problems in Brazil, where it has been market leader for trucks of more than 5 metric tons for over a decade, because it lacks a presence in the growing North American market.
The Munich-based group said on Tuesday it incurred a 19 million-euro ($21 million) quarterly loss as costs of 170 million euros to reorganize truck production hit results.
“It is no easy task to initiate fundamental and cost-intensive measures to safeguard future growth in economically difficult times,” Chief Executive Georg Pachta-Reyhofen said.
MAN, which has long suffered from languishing profitability and high fixed costs in truck operations, is aiming for savings of more than 600 million euros by 2017. The company also makes diesel engines and turbines.
Full-year operating profit at the group will be “significantly hit” by restructuring costs while sales will drop slightly below year-ago levels, MAN said, after previously guiding for flat earnings and sales.
MAN’s retrenchments in Europe contrast with firming truck demand in the region.
Sales of heavy-duty commercial vehicles weighing 16 metric tons or more surged by a third in the European Union in June to 23,360 units, leading to a first-half increase of 20 percent, the European Automobile Manufacturers Association (ACEA) said on Tuesday.
$1 = 0.9030 euros Reporting by Andreas Cremer; Editing by Kirsti Knolle and Mark Potter