Traton Financial Services, the financial arm of commercial vehicle manufacturer Traton Group, today reported increased revenue but lower operating profit for the second quarter.
BY THE NUMBERS: Munich-based Traton Financial reported the following in its Q2 earnings statement:
- Sales revenue of 468 million euros ($508.1 million), up 3.3% quarter over quarter and 22% year over year;
- Operating profit of $10.5 million, down 30.7% QoQ and 39.5% YoY; and
- Return on sales of 9.7%, down from 19.8% in Q2 2023.
Traton Financial’s revenue growth came as the company works to expand into a global financial services entity, according to the earnings statement.
BIGGER PICTURE: Parent Traton Group reported decreased revenue in Q2, which the company attributed to weak truck markets in Germany and much of Europe, along with reduced demand for Class 8 trucks in the United States.
“In the U.S., we see decreasing figures, and this is mainly coming from the on-road Class 8 vehicles, whereas we actually see growth in Class 6 and 7,” Traton Group Chief Executive Christian Levin said in the company’s Q2 earnings call.
Traton Group’s revenue fell 1.5% QoQ to $12.6 billion. The company sold 78,962 units in Q2, down 2.7% QoQ.
NOTEWORTHY: Traton Group began increasing its presence in the EV realm in the first half of 2024. The company received 1,706 orders for EV units in the first half, up from 1,054 over the same stretch in 2023.
Navistar, a U.S. subsidiary that manufactures trucks, buses and engines, now has more than 100 EV dealers to support electric buses, according to the earnings report. Germany-based MAN, another manufacturing subsidiary, received 2,000 order requests for its electric heavy-duty eTruck, just seven months after launching sales.
“Strategically interesting is that we were never into the energy supply of customers before, with very few exceptions,” Levin said.
MARKET OUTLOOK: Shares of Traton [OTCPK: TRATF] were up 0.7% from market open today to close at $31.44. The company has a market cap of $15.62 billion.
Editor’s note: All amounts have been converted to U.S. dollars.
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