Traton Sales Beat Forecasts on Better Pricing, South America Growth
By Mauro Orru
Traton posted sales above expectations for the first quarter, thanks to stronger pricing and market growth in South America despite slower momentum in the European truck business.
The Volkswagen-owned commercial-vehicle maker on Friday reported sales revenue of 11.80 billion euros ($12.66 billion), up 5% on year.
The group sold 81,148 vehicles in the quarter, a 4% fall from a year earlier, but revenue increased thanks to better pricing. Incoming orders declined 3% to 66,434.
Chief Financial Officer Michael Jackstein said the European truck business had lost some of its momentum, though Traton managed to largely make up for the slowdown with growth in South America.
"We are getting better and better at cushioning the effects of regional fluctuations," he said.
Adjusted operating profit climbed to EUR1.11 billion from EUR935 million. Meanwhile, adjusted operating return on sales--a closely watched profitability metric--increased to 9.4% from 8.4%.
Analysts had forecast sales revenue of EUR11.23 billion, an adjusted operating profit of EUR960 million and an adjusted operating return on sales of 8.6%, according to a Vara Research consensus based on estimates from 16 analysts.
The parent company of Scania, MAN, Navistar, and Volkswagen Truck and Bus said it continues to expect unit sales and sales revenue this year to either fall as much as 5% or rise as much as 10%.
Its adjusted operating return on sales should range from 8% to 9%, while net cash flow from operations should come in between EUR2.3 billion and EUR2.8 billion.
Write to Mauro Orru at mauro.orru@wsj.com
(END) Dow Jones Newswires
April 26, 2024 02:23 ET (06:23 GMT)
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