Traton Posts Big 9-Month Financials With Navistar Included For First Time

Traton Group sold 53% more trucks and buses in the first nine months of 2021, incorporating Navistar in its results for the first time following the $3.7 billion acquisition of the Lisle, Illinois-based truck manufacturer in July.

The global shortage of semiconductors and other supply constraints impacted Traton, but the Volkswagen AG truck holding company that includes the Swedish brand Scania Vehicles & Services, Germany's MAN Trucks and Buses, and Brazil's Volkswagen Caminhões e Ônibus, powered through to post 195,400 total unit sales compared to 127,700 a year ago.

"Managing the supply chains remains a big challenge, but we find new solutions every day to serve our customers as quickly as possible. Our entire industry is experiencing a perfect storm right now," Traton CEO Christian Levin said in a press release 

Navistar's Contribution

The results included sales from Traton's new Navistar Manufacturing Operations unit, which recorded 14,100 sales — 11,300 trucks and 2,800 buses — from July through September. Revenue was 1.7 billion euros ($1.99 billion). 

Navistar earned 42 million euros ($49 million) for the three months, an operating return of 2.5%, well under the 8% earnings before interest, taxes, depreciation, and amortization it had been posting as a stand-alone company. The operating result was reduced by the 40 million euros ($46.7 million) acquisition cost.

Including 23,600 Navistar orders, incoming Traton bookings rose by 84% to 268,300 vehicles. Truck orders rose 89% and buses grew by 18%, reflecting lower pandemic-related public transit volumes.

Traton's adjusted operating results of 1,322 million euros compared to a negative 9 million euros in the first nine months of 2020 for an adjusted operating return of 6.1% compared to a negative 0.1%. Operating results were 641 million euros, or a 3% return on sales, compared to a negative 58 million euros or a negative 0.4% a year ago.

Traton TRATF expects a "very sharp year-on-year increase" in sales in Q4 and in 2022 assuming COVID impacts are minimal and supply chains right themselves. It forecasts a 5% to 6% margin for 2021 as a whole, including Navistar results.

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