-Volkswagen's truck unit Traton on Monday reported a 10% fall in first-quarter revenue, citing a continuation of the unfavourable economic and political situation, particularly in North America. Sales
Traton's Q1 Orders Increase Despite Revenue Decline
By Bartosz Dabrowski and SimonFerdinand Eibach
-Volkswagen's truck unit Traton on Monday reported a rise in first-quarter orders, even as its revenue fell 10% on less favourable economic and political situation, particularly in North America.
Traton's shares climbed 5.15% as of 0745 GMT, as its incoming orders rose by 12% to 74,300 vehicles in the first three months of the year, compared to 66,400 vehicles sold a year ago.
Sales at March-end totalled 10.33 billion euros ($11.75 billion), just shy of an estimate of 10.55 billion euros in a poll of analysts by Vara Research.
"Order strength continues," Jefferies analysts wrote in a research note, adding that the positives, including spending on defence, were driving customer sentiment.
The truck maker's unit Scania in February received the largest order from the Swedish defence administration since the 1980s, with the new vehicles to be delivered in 2025-2027.
Traton said it remained confident about the second half of the year and maintained its annual sales guidance in a range of minus 5% to plus 5% with an operating return on sales of between 7.5% and 8.5%.
It said while orders fell in North America, its truck order intake in Europe increased year-on-year, with a truck book to bill ratio at 1.3.
Truck makers have been signalling a slowdown in the North American market although some analysts have pointed to signs of orders picking up momentum in Europe.
The group confirmed its preliminary adjusted operating profit figure for the first quarter of 646 million euros, down 58% from last year.
($1 = 0.8790 euros)
(Reporting by Bartosz Dabrowski and Simon Ferdinand Eibach; Editing by Christopher Cushing, Kirsten Donovan and David Evans)
