Volkswagen's Traton Truck Unit Expects Difficult 2020 After Orders Slump
November 04 2019 - 3:02AM
Dow Jones News
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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