Truckmaker Traton's orders boosted by US recovery, electric trucks
Traton's Q1 Performance and Market Developments
By Simon Ferdinand Eibach and Emanuele Berro
April 29 (Reuters) - Volkswagen's truck unit Traton reported an 18% rise in its first-quarter orders to 87,400 vehicles on Wednesday, as demand in the U.S. recovered and demand for electric trucks grew.
US Market Recovery
The U.S. market was last year impacted by uncertainty caused by President Donald Trump's tariffs on imported trucks, but CEO Christian Levin said he was confident Traton had passed the worst part of this cycle.
International Motors' Growth
Orders at Traton's U.S. brand, International Motors, grew 80% mainly driven by heavy trucks, Levin told analysts during a post-earnings call.
Electric Truck Demand
Quarterly orders of electric trucks increased by 38% across Traton's markets, he added.
Financial Results and Analyst Reactions
Traton's adjusted operating profit fell 9.9% to 582 million euros ($681 million) in the first quarter, but beat a company-compiled consensus of 518 million euros.
J.P. Morgan highlighted record orders for the Scania brand and Traton's confidence in having passed the market trough in North America. The shares were up 1.6% by 1015 GMT.
Scania's Expansion in China
Scania is currently ramping up its new manufacturing facility in Rugao, China, on the outskirts of Shanghai.
Electrification Strategy
One goal of the 1.7-billion-euro investment is to gain Chinese know-how on truck electrification, as the company plans to shift the production at the plant to electric models from diesel trucks.
Cost Risks and Challenges
Electric Mobility Project Costs
COST RISKS
Traton said the first-quarter results were impacted by costs of 207 million euros related to adjustments to individual projects in the electric mobility sector.
Legal and Operational Charges
It also incurred charges of 136 million euros relating to several civil lawsuits against Scania and MAN, arising from the European Commission's 2016 price-collusion ruling.
Cost-Cutting Measures
The company was able to cut some costs by laying off 300 employees in its Mexican sites, through which the U.S. market is supplied, finance chief Michael Jackstein said.
Commodity Price Impact
Higher commodity prices caused by the Iran war are expected to have a cost impact in a low triple-digit euro range in the second half of 2026, he added.
($1 = 0.8546 euros)
(Reporting by Simon Ferdinand Eibach and Emanuele Berro in Gdansk; editing by Matt Scuffham and Milla Nissi-Prussak)
