MAN SE ’s third-quarter orders dropped 9 percent as a recession in Brazil ravaged demand at Europe’s third-biggest truckmaker.

Advance sales contracts fell to 3.16 billion euros ($3.5 billion) from 3.47 billion euros a year earlier, the Munich-based commercial-vehicle unit of Volkswagen AG said Tuesday in a statement. Earnings before interest and taxes rose to 86 million euros from 82 million euros in the 2014 period. MAN reiterated forecasts that full-year operating profit will be “significantly impacted” by reorganization costs and the Brazilian demand decline.

“The good news is that we are seeing a noticeable recovery in the European commercial vehicles market,” Chief Executive Officer Joachim Drees said in the statement. “However, the situation in other regions — such as Brazil or Russia — and in the power-engineering business area remains tense.”

MAN is eliminating 1,800 jobs in Europe, about 5 percent of its workforce in the region, to bolster profitability there and counter the effects of the economic contraction in Brazil. Swedish competitor Volvo AB said last week that pricing and margins in the South American country remain under pressure. Both Daimler AG and Volvo, the world’s two biggest truckmakers, are counting on robust demand in Europe and North America to make up for weakening markets in China and South America.

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