Traton Financial Services’ revenue rose in the first quarter of 2024 as the company continued to expand its truck and bus portfolio and grow its interest income.
The financing arm of truck and bus manufacturer Traton posted Q1 sales revenue of 453 million euros ($484.62 million), up 28.7% year over year, according to the company’s earnings presentation today
Traton Financial Services’ growth follows the relaunch of Navistar Financial Services’ retail business in October and the continued growth of Man Financial Services, Scania Financial Services and Volkswagen Truck and Bus Financial Services, with the company emphasizing growing the individual financial services brands, Traton Chief Financial Officer Michael Jackstein said during the company’s earnings call today.
“We will gradually increase our financial services business with Man and Volkswagen Truck and Bus on the basis of a framework agreement signed with Volkswagen Financial Services,” he said. “During the first quarter, we prepare for further important country rollouts starting in the second quarter, and Scania and Navistar will continue to grow their portfolios with a growing business activity. The financial services offering for all trades and brands is a strategic priority for 2024 and beyond.”
Traton Financial Services oversees the financial services for Man, Navistar, Scania, and Volkswagen Truck and Bus., according to the company’s earnings report.
North American vehicle sales drop 3% YoY
Traton reported that global vehicle sales decreased 4.1% YoY in Q1, landing at 81,148 units, according to the earnings report. Global all-electric vehicle sales reached 315 units, up 22.1% YoY.
Traton’s sales revenue grew 5.5% YoY to $12.6 billion, Traton Chief Executive Christian Levin said on the call.
“This development implies our successful pricing strategy, but we also profited from a favorable market and product mix, hence our diversified business model,” he said. “Besides that, we benefited from a continued high demand for our vehicle services given aged truck fleets and high utilization.”
Traton North American truck sales for Q1 tallied 19,246 units, down 3% YoY, according to the earnings report. Traton North American bus sales plummeted 73.6% YoY for the first three months, with sales totaling 986 units.
Global truck sales were 68,772 units, down 2% YoY, while bus sales dropped 33.9% YoY to 5,032 units, and van sales landed at 7,344 units, up 8.6% YoY.
Global Traton electric vehicle orders up 65% YoY
Total Traton vehicle orders in Q1 declined 3% YoY to 66,434 units, according to the presentation. Global truck orders landed at 53,034 units, down 1.1% YoY, while bus orders clocked in at 8,151 units, up 4.9% YoY, and van orders landed at 5,249 units, down 26% YoY. Traton global all-electric vehicle orders jumped 65% YoY to 736 units.
Traton North American truck orders totaled 14,727 in the first three months, up 13.1% YoY, according to the earnings report. North American bus orders totaled 4,198 during the first three months, up 3% YoY.
Shares of Traton SE [OTCPK:TRATF] were trading at $35.69 at market close today, down 0.96% or $0.35 from market open. TRATON has a market capitalization of $18.19 billion.
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