VW’s trucks arm Traton tops forecasts even as markets normalise
4:59 am Friday, April 26th, 2024
By Eva Orsolya Papp and Tristan Veyet
(Reuters) -Volkswagen’s truck making unit Traton beat first-quarter sales and profit forecasts on Friday, helped by a rise in average prices, even as demand weakens after a strong 2023.
“Demand in the European truck business continued to normalize. Our vehicle services business, which remains very strong, is a cornerstone we can rely on,” CEO Christian Levin said in a statement.
The maker of MAN and Scania lorries posted sales revenue of 11.8 billion euros ($12.7 billion) for January-March, up 5% from a year earlier. That beat analysts’ average estimate of 11.2 billion euros in a poll by Vara Research.
Traton’s operating result increased by 26.7% to 1.06 billion euros, also ahead of the estimated 948 million euros.
The company’s shares were up 5.8% at 0850 GMT, with Jefferies analysts saying the quarterly result could raise full-year expectations.
However, Traton also reported a 3% decline in new orders, mirroring peers Volvo and Daimler Truck earlier this month.
European truck makers are facing a tougher 2024, with a downturn in Europe and North America after pent-up post-pandemic demand drove sales to historic highs last year. A decline in deliveries is widely expected this year before a projected return to growth in 2025.
Traton reaffirmed its 2024 guidance, including for unit sales within a range of down 5% to up 10%.
($1 = 0.9326 euros)
(Reporting by Eva Orsolya Papp and Tristan Veyet in Gdansk; Editing by Milla Nissi and Mark Potter)
