Traton Group Reports Higher Net Income, Revenue
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Traton Group, which now includes U.S.-based truck maker Navistar, reported gains in net income and revenue for its 2021 nine-month period on the strength of truck manufacturing and financial services.
“Managing the supply chains remains a big challenge, but we find new solutions every day to serve our customers as quickly as possible,” Christian Levin, CEO of Traton Group, said in a statement. “Our entire industry is experiencing a perfect storm right now. Having said that, I am very optimistic that the Traton Group will emerge all the stronger from this storm and then be able to sharpen its competitive edge.”
Net income in the nine-month period (reported in euros), reached the equivalent of $787.1 million, or $1.55 per share, compared with a loss of $183.7 million, minus 34 cents, a year earlier.
Despite the ongoing shortages in the supply of semiconductors and other components, the @TRATON_GROUP sold 53% more #trucks and #buses in the first nine months of 2021. More information >> https://t.co/EJCl6lp1mK pic.twitter.com/dpUN2sQuvC — TRATON GROUP (@TRATON_GROUP) October 28, 2021
Net income at its industrial business unit, which includes truck manufacturing, reached $644.1 million, compared with a loss of $246.5 million a year earlier.
Net income at its financial services unit increased to $151.1 million, compared with $61.3 million in the 2020 period.
Net income was held back by a $9.3 million loss in the category “others/reconciliation.”
Revenue reached $25.1 billion compared with $18.2 billion a year earlier, an increase of 38%, according to the Munich-based company.
Including Navistar, total orders rose 84% to 268,300 vehicles.
Orders for trucks climbed 89% to 255,000 compared with 134,600 a year earlier. Trucks were significantly higher than buses, which grew by 18% to 13,300 compared with 11,300 in the 2020 period.
Navistar Manufacturing Operations, its new operating unit, notched 23,600 orders for vehicles in the first quarter of its consolidation.
Navistar’s sales from July until the end of September stood at 14,100 vehicles, including 11,300 medium- and heavy-duty trucks and 2,800 buses. Revenue reached $1.95 billion for the three months.
The Navistar Manufacturing Operations unit comprises Navistar’s manufacturing activities and the distribution of products and services, mainly in the U.S., Canada, Mexico and Brazil.
Traton acquired Navistar in July for $3.7 billion to gain access to the North American truck and bus market, the key profit center for commercial vehicle manufacturers, and to further its goal to be what it called a “global champion.”
In addition to Navistar, Traton’s brands include MAN, Scania, Volkswagen Caminhões e Ônibus and RIO.
An LT Series Truck. (Navistar International Corp.)
Traton capital expenditures amounted to the equivalent of $127.3 million in the current reporting period, including in autonomous vehicle technology developer TuSimple Holdings Inc. of San Diego, and in Stockholm-based Northvolt AB, a supplier of sustainable battery cells and systems.
Traton said in the release that the outlook was good for the second half of 2021.
“Subject to further developments in strained supply chains in the fourth quarter and the resulting potential production stops, or potential new restrictions in connection with the COVID-19 pandemic, we project a very strong year-on-year increase in sales revenue for the Traton Group in fiscal year 2021. Our projection takes into account Navistar’s sales revenue in the second half of 2021.”
For the first nine months of 2021, Navistar’s International truck brand had Classes 4-8 U.S. retail sales of 42,482, of which 20,586 were in Class 8, WardsAuto.com reported.
That compared with Classes 4-8 sales of 36,900, of which 16,774 were Class 8 in the 2020 period, according to Wards.
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