Volkswagen's Traton Truck Unit Expects Difficult 2020 After Orders Slump

Date : 11/04/2019 @ 8:02AM
Source : Dow Jones News
Stock : Volkswagen AG (VOW)
Quote : 151.05  -6.3 (-4.00%) @ 4:35PM
Volkswagen share price Chart

Volkswagen's Traton Truck Unit Expects Difficult 2020 After Orders Slump

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   By Max Bernhard 
 

Truck maker Traton SE (8TRA.BE) warned it expects a difficult 2020 after reporting higher revenue and profit despite a slump in orders.

"Based on the strong development of unit sales and the good performance of the group, we confirm our targets for 2019. At the same time, we are intensively preparing for a much more difficult environment in 2020," Chief Executive Andreas Renschler said.

The situation is expected to be particularly difficult in Europe, the partially listed Volkswagen AG (VOW.XE) unit said.

Traton, which comprises the MAN and Scania brands and the Brazilian truck unit Volkswagen Caminhoes e Onibus, said its nine-months operating profit rose by 34% to 1.48 billion euros ($1.65 billion). Sales revenue increased by 6% to EUR19.83 billion, despite a drop in order intake of the same magnitude.

Orders slumped in Europe, in part due to significant declines in Germany and in the U.K. where demand was hit by Brexit pull-forward effects, Traton said. Orders also substantially declined in Russia, India and Turkey, while Brazil's economic recovery led to higher demand, it said.

 

Write to Max Bernhard at max.bernhard@dowjones.com; @mxbernhard

 

(END) Dow Jones Newswires

November 04, 2019 02:47 ET (07:47 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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