German truck maker MAN, which is majority owned by Europe's biggest car maker Volkswagen, said on Friday it expects lower sales and earnings this year after a disappointing 2012.
"MAN Group will see a slight decline in revenue and a disproportionately large drop in operating profit in 2013," the company said in a statement.
In 2012, MAN's net profit declined by 24 percent to 189 million euros ($253 million) on a 35-percent drop in operating profit to 964 million euros, while sales fell by 4.0 percent to 15.772 billion euros and new orders were down 7.0 percent at 15.889 billion euros.
MAN blamed its overall performance on a "clear decline" in the commercial vehicles business area, while the power engineering division achieved stable operating profit.
It described the drop in sales as only "moderate" in view of the sharp drop in demand in the European and Brazilian commercial vehicles markets.
Nevertheless, MAN insisted it was not satisfied with its performance and would seek to introduce efficiency-boosting measures.
"Despite the generally difficult economic conditions, the executive board is not satisfied with the results of the fiscal year and has therefore initiated appropriate improvement measures," it said.
"The focus will be on cutting costs and boosting efficiency in production, as well as in administration, sales, and development," it said, without elaborating further.