TRATON GROUP Achieves Strong Start in 2024 Despite Market Challenges

TRATON GROUP reported a strong performance for the first quarter of 2024, with notable increases in sales revenue and earnings, evidencing robust profitability even amid a slight dip in unit sales and incoming orders. The multinational powerhouse recorded a 5% rise in sales revenue to €11.8 billion compared to the previous year, alongside a significant improvement in the adjusted operating result which escalated by €171 million to reach €1,106 million. This improvement is reflected in the adjusted operating return on sales, which rose by 1 percentage point to 9.4%.

The company experienced a 4% decrease in vehicle sales, totaling 81,100 units, and a 3% drop in incoming orders which stood at 66,400 units for the quarter. Despite these declines, the company demonstrated strong market adaptability and growth in other areas, particularly in its vehicle services business and regional markets such as South America and Brazil. Furthermore, different brands under TRATON showed varied performances, with Scania's operating return on sales notably reaching 14.3%, highlighting impressive brand profitability amid a fluctuating market.

Looking ahead, TRATON is positive about maintaining its growth trajectory through 2024, with projected unit sales and sales revenue fluctuations ranging between -5% and +10%, and an anticipated adjusted operating return on sales between 8.0% and 9.0%. The company also expects a net cash flow in the TRATON Operations business area to be between €2.3 billion and €2.8 billion, signifying a stable financial outlook for the year.