Truckmaker Traton sees increase in first quarter orders
Traton's First Quarter Performance and Market Developments
Order Growth and Market Recovery
April 29 (Reuters) - Volkswagen's truck unit Traton on Wednesday reported an 18% rise in first-quarter orders to 87,400 vehicles as demand in the United States recovered.
CEO Christian Levin cited an 80% order increase at its U.S. subsidiary International Motors, driven by heavy-truck orders, as a key factor behind the increase.
Financial Results
Adjusted operating profit fell by 9.9% to 582 million euros ($681 million) in the first quarter, beating a company-compiled average forecast of 518 million euros.
Shares in Traton gained 1.2% in early Frankfurt trade.
Analyst Insights
JP Morgan analysts pointed to record orders at the company's Scania business, adding that "Traton is increasingly confident that they have passed the cycle trough in North America"
Civil Litigation Charges
The company said that the result was impacted by expenses of 207 million euros relating to adjustments to individual projects in the field of electric mobility.
Charges of 136 million euros relating to civil lawsuits against Scania and MAN arising from EU Truck Cases in various countries were also incurred.
Scania's Expansion in China
Scania is currently ramping up its new manufacturing facility in Rugao, China, on the outskirts of Shanghai.
One goal of the 2 billion euro investment is to acquire Chinese know-how on truck electrification, as the company plans to switch to the production of electric models from diesel trucks at the plant.
Revenue Declines and Future Outlook
The company, which also owns MAN and International Motors, saw a 5% decrease in revenue in the first three months of the financial year 2026, missing analyst forecasts by 7%.
Levin cited an increase in electric truck orders as a driver behind the order gains, which were up 38%.
($1 = 0.8546 euros)
(Reporting by Simon Ferdinand Eibach and Emanuele Berro in Gdansk; editing by Matt Scuffham)
