Navistar, which operates the International Trucks brand, reported an adjusted operating profit of $190.4 million, more than double the 2022 period’s $89.7 million. (Traton Group)
Traton SE’s profits soared in the second quarter of 2023 as sales jumped compared with the year-ago period, the parent company of Navistar said July 26.
The company’s adjusted operating profit in the three months that ended June 30 totaled $1.15 billion compared with $438.5 million in 2022. Traton reports in euros.
Munich-based Traton’s second-quarter sales revenue totaled $12.92 billion compared with $10.47 billion in the year-ago period.
Traton beat consensus analyst expectations for the quarter of a $1.008 billion profit and $12.410 billion in sales, according to Vara Research.
After a successful Q1, the #TRATONGROUP can report continued positive development in unit sales, sales revenue, and operating return on sales in the first half of 2023. Our #TRATON brands have delivered a strong performance in a highly uncertain environment.
— TRATON GROUP (@TRATON_GROUP) July 26, 2023
Navistar, which operates the International commercial truck brand, reported an adjusted operating profit of $190.4 million, more than double the 2022 period’s $89.7 million.
Navistar’s second-quarter sales revenue totaled $3.152 billion, a 10% increase from $2.876 billion in the year-earlier quarter.
The unit’s incoming orders in the most recent three-month period totaled 5,226, just over a quarter of the 2022 period’s 20,608. Of that total, 2,803 were trucks, a decrease of 84% year-over-year from 17,678.
Navistar saw sales total 23,243 vehicles, up 15% compared with 20,263 a year earlier. Of that total, 19,595 were trucks, an increase of 14% year-over-year from 17,176 in the year-ago quarter.
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Navistar’s incoming orders for trucks and buses in the first six months of 2023 totaled 21,139, a 58% decrease compared with 50,471 in the prior-year period.
Navistar’s truck sales in the first half totaled 38,841, a 24% increase compared with 31,392 in 2022.
Traton said the supply chain situation continued to improve during the first six months of the year, making higher production volumes possible. At the same time, logistics shortages still persist in certain areas.
The improved situation in the supply chains had an impact in North America, with the market for Classes 6-8 trucks developing strongly compared with the prior-year level, Traton added.
Navistar’s first-half orders slumped because the majority of the orders for 2023 already had been commissioned in 2022. Additionally, order books for next year had largely not yet been opened because of, among other factors, future regulatory requirements in the U.S., Traton said without going into further detail.
Traton Brands
• Navistar
• Scania
• MAN
• Volkswagen Truck & Bus
Traton said it had become “increasingly possible” to meet the demand that accumulated over the past two years, causing market growth to accelerate significantly in many regions.
Traton’s incoming truck orders in the first half of 2023 totaled 98,246 compared with 135,578 in the year-ago period, a decline of 28%. The company said 13,472 of these orders were in the U.S. and Canada compared with 38,504 in the year-ago period, a decrease of 65%.
Overall truck sales at Navistar’s parent company totaled 139,843 in the first six months, a 21% increase compared with 115,115 in the 2022 period. The U.S. and Canada accounted for 34,430 of sales compared with 26,791 in the year-ago period, an increase of 29%.
Traton’s adjusted operating profit for the first half more than doubled to $2.185 billion from $883.9 million in the year-earlier period. Sales revenues for the group as a whole increased 27% year-over-year to $24.368 billion from $19.94 billion.
Levin
The company expects robust demand and improved production levels in still uncertain and unpredictable markets, Traton Group CEO Christian Levin said. Overall truck demand is robust, with high replacement needs, he added.
“However, we are also seeing transportation activity slow down in some markets. Inflationary pressures continue, and we are witnessing a significant increase in interest rates,” said Levin.
“In light of the strong performance in the first six months of the year, we are reiterating our forecast for fiscal year 2023 to the largest extent possible,” Traton Group Chief Financial Officer Michael Jackstein said. “We are still expecting the Traton Group’s unit sales and sales revenue to increase by 5% to 15% each.”
