TRATON SE is off to a strong start in 2019. During the first quarter of 2019, the TRATON GROUP increased its operating profit by 21.9% compared with the prior-year quarter to €470 million. All three brands MAN, Scania, and Volkswagen Caminhões e Ônibus contributed to this positive result. Sales revenue rose by 6.0% year-on-year to €6.4 billion across all brands. During the first three months of 2019, the TRATON GROUP sold 57,160 vehicles worldwide, up 7.4% against the prior-year figure. This growth was primarily supported by the continued favorable development of the core markets of Europe and Brazil.
Andreas Renschler, the CEO of TRATON and a member of the Board of Management of Volkswagen AG, said: “We continue to pursue our profitable growth path we set out on when our Group was established. The Group recorded the highest-ever unit sales in a single quarter. Our further aim remains very clear: we want to be an independent Global Champion in the transportation industry. With the full support of Volkswagen AG, we continue to work on implementing our strategy.”
TRATON GROUP: Three strong brands lay the foundation for profitable growth
With its brands MAN, Scania, and Volkswagen Caminhões e Ônibus, the TRATON GROUP is a leading commercial vehicle manufacturer worldwide, pursuing the goal of creating a Global Champion in the industry through profitable growth, customer-centric innovations, and global expansion. The Group posted operating profit of €470 million, which is reflected in an operating return on sales of 7.3% (previous year: 6.4%).
Christian Schulz, CFO of the TRATON GROUP, said: “We’ve got momentum. TRATON is off to a good start in 2019; with an return on sales of 7.3%, it is trending at the upper end of the set target range of between 6.5% and 7.5%.”
The TRATON GROUP operates in two segments: Industrial Business and Financial Services. The Industrial Business comprises the three operating units MAN Truck & Bus, Scania Vehicles & Services, and Volkswagen Caminhões e Ônibus. During the first quarter of 2019, the Industrial Business segment generated sales revenue of €6.3 billion, with an operating profit of €438 million (previous year: €351 million).
Net cash flow for the first quarter 2019 amounted to €1.6 billion, largely favored by the sale of the Power Engineering business area to Volkswagen AG. Adjusted for this factor, cash flow amounted to €–0.4 billion, which was impacted disproportionately by the inventory build-up at all brands. This build-up is seasonal in nature and is heightened as a result of having remedied supplier bottlenecks in the production process at Scania. The lead time in the delivery process has been streamlined as a result. The TRATON GROUP continues to focus on the target range for the cash conversion rate (percentage of net profit converted to free cash flow) of 30–40% for 2019.
The Financial Services segment offers customers a wide range of financial services, including dealer and retail financing, leasing, banking, and insurance products. In the first three months of 2019, this segment recorded an operating profit of €33 million (previous year: €29 million) and sales revenue of €203 million (previous year: €179 million).
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SOURCE: Volkswagen
