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Published 10 months, 3 weeks ago

Cars Volkswagen Published by J. Doe

TRATON GROUP sees first signs of business recovery in third quarter

Incoming orders declined by 27% to 87,400 (H1 2019: 120,500) units. At 1.12, the book-to-bill ratio, meaning the ratio of incoming orders to unit sales, was higher than in the first six months of 2019 (0.98).

The decline in unit sales in the Truck business (including the MAN TGE van) of the three brands Scania, MAN, and Volkswagen Caminhões e Ônibus was most significant in Europe (EU27+3 region), where it fell by 46%. The South American market also suffered from the consequences of the COVID-19 pandemic, with unit sales of trucks contracting by 22% in that region. In the Bus business, South America was the weakest market in terms of unit sales with a drop of 31%, Europe (EU 27+3 region) posted a less pronounced decline of 22%.

Sales revenue in the Industrial Business segment fell by 26% to €9.9 billion (H1 2019: €13.3 billion). The primary factor here was the decline in the New Vehicles business due to the market downturn. By contrast, the After Sales business proved to be relatively robust, with a 6% decline. The operating loss in the Industrial Business was €265 million (H1 2019: operating profit of €1,008 million). The measures taken in connection with the pandemic — in particular the worldwide closures of our production sites starting in the second half of March — weighed on operating profit in the reporting period.

The Financial Services segment generated sales revenue of €413 million (H1 2019: €419 million) and operating profit of €44 million (H1 2019: €70 million).

The operating units at a glance

Operating profit came to €221 million (H1 2019: €828 million). The operating return on sales reached 4.2% (H1 2019: 11.6%). MAN Truck & Bus recorded unit sales of 31,700 (H1 2019: 54,000) vehicles, a year-on-year decline of 41%. The operating loss was €387 million (H1 2019: operating profit of €253 million). This corresponds to an operating return on sales of –9.5% (H1 2019: 4.6%).

Expected business development

The continuing COVID-19 pandemic and its effects on the economic environment are making it extremely difficult for us to make any concrete statements about the expected future course of business.

Provided there is no surge in the number of new infections and the associated countermeasures adopted by the countries, we are assuming a gradual recovery in our business activity in the second half of 2020. Overall, however, we continue to expect a dramatic fall in unit sales for the fiscal year, and cannot rule out an operating loss for the TRATON GROUP in fiscal year 2020, said TRATON’s Chief Financial Officer Christian Schulz .

The annual general meeting of TRATON SE will be held on Wednesday, September 23, 2020, at 10.00 a.m. You can download the complete media presentation, press release, and investor relations presentations here from 8 a.m. CEST on July 31: https://ir.traton.com/websites/traton/German/8900/events.html

Original article

Aug 01, 2020 at 17:12

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