Investopedia: Truck-Makers Hauling In Profits

Judging by the comments from one of Europe's largest truck-makers, the recovery in the market for big rigs still has a ways to go. Along with its earnings release on Monday, Germany's MAN SE (Nasdaq:MAGOY.PK) expressed a fair bit of confidence in the growth outlook for the truck market in 2011. While investors who showed up early to play the commercial truck revival have already done well, this latest news gives at least some hope that the rally is not running on empty just yet. 

Strength in Europe, Strength in Emerging Markets

Not only did MAN report a 22% jump in revenue from last year, but the company reversed a year-ago loss in profits of over $1 billion. Looking specifically at the commercial truck segment, revenue jumped 36% on a unit increase of nearly 53%. Encouragingly, orders in the truck business were up 68% and the company talked about strength in both the European market and developing markets like Brazil. (For more, see The Upside Of Trucking.)

If Europe is indeed strong, that is good news not only for MAN, but major players like Volvo (Nasdaq:VOLVY.PK) and Scania as well, to say nothing of larger vehicle companies like Volkswagen (Nasdaq:VLKAY.PK), Daimler and Fiat Industrial that all have business (or investment stakes) in the commercial truck sector. 

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