In its second quarter report, Munich-based MAN said net profit dropped by 94 percent compared to the same period last year. Instead of the 446 million euro profit the group pulled in in 2008, this second quarter saw earnings at just 27 million euros ($38 million).

With the announcement, share prices in the company - one of the world's leading producers of heavy trucks, diesel engines and turbines, fell five percent on Thursday as well.

"Incoming orders are low and a turnaround is currently not in sight," chief executive Hakan Samuelsson told shareholders in a letter. He also said the company is not expecting improvement in the short term.

Orders in heavy truck manufacturing were particularly affected, falling by 58 percent in the first half. Total sales were down by nearly a quarter.

However, Samuelsson assured shareholders that "MAN is equipped to cope well - even with a prolonged lean period."

kj/afp/dpa/Reuter
Editor: Chuck Penfold