Latest news with #MichaelJackstein
Reuters
5 days ago
- Automotive
- Reuters
VW's Traton slashes 2025 outlook as US uncertainty weighs on demand
July 25 (Reuters) - Volkswagen's truck unit Traton ( opens new tab slashed its full-year guidance late on Thursday, citing global uncertainty and weak U.S. demand due to trade tensions, sending its shares falling 3.2% by 1030 GMT on Friday. Traton now expects unit sales and revenue to decline by up to 10%, compared to its previous forecast between a 5% drop and 5% growth. It also cut its target for adjusted operating return on sales to 6-7% from 7.5–8.5%. The downgrade came despite an improvement in first-half orders, which rose 11% year-on-year to 139,600 vehicles, driven primarily by demand for replacement vehicles in Europe. "There is no evidence yet for a sustained turnaround in the European market," CFO Michael Jackstein said in a conference call. Traton said the economic situation in Europe remained weak, while North American truck buyers continued to show caution and demand in Brazil stayed subdued. "Visibility is low in most regions," said analyst Fabio Hoelscher from Warburg Research. Pal Skirta, equity analyst from Metzler Equities, said that Traton's recovery depended heavily on U.S. tariff policy. Without a trade agreement between the U.S. and its key partners, heavy-duty truck demand is unlikely to rebound, keeping pressure on capacity utilization and pricing at Traton's International Motors brand, he added. The U.S. market remains a key concern for German automakers, who are lobbying for a trade agreement to replace the 25% tariff on car and parts imports. The levy has dampened demand and competitiveness in the region. Hopes for progress have been buoyed by Japan's recent success in striking a similar deal with Washington, raising expectations for a breakthrough with Europe. European truck makers Daimler Truck and Volvo have been signalling sluggish demand in North America. However, Volvo surprised markets last week with stronger quarterly earnings, suggesting recovery signs in Europe. Traton, which also owns the Scania and MAN brands, posted a 33% year-on-year drop in its adjusted operating result to 1.4 billion euros ($1.64 billion) alongside a 6% decline in its half-year revenue to 21.9 billion euros. Volkswagen, which owns more than 87% of Traton's shares, also cut its full-year guidance on Friday after taking a $1.5 billion tariff hit in the first half of 2025. ($1 = 0.8512 euros)
Yahoo
29-04-2025
- Automotive
- Yahoo
Traton SE (TRATF) Q1 2025 Earnings Call Highlights: Navigating Market Challenges with Strategic ...
Revenue: EUR10.6 billion, down 10% year on year. Adjusted Return on Sales: 6.1%, a decline of 3.3 percentage points year on year. Net Cash Flow: Negative EUR111 million, impacted by lower operating results and higher investments. Earnings Per Share: EUR1 per share. Total Incoming Orders: Increased by 12% to 74,300 units. European Order Intake: Increased by 56% in Q1. North American Order Intake: Dropped by 35% to 12,400 vehicles. South American Unit Sales: Grew by 10%. Scania Margin: 10.5% in Q1. MAN Margin: 4.6% in Q1. International Margin: 2.3% in Q1. Volkswagen Truck & Bus Margin: 13.1% in Q1. Traton Financial Services Revenue Increase: 17% in Q1. Net Debt: Increased by EUR282 million to EUR5.2 billion. Warning! GuruFocus has detected 4 Warning Sign with TRATF. Release Date: April 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Traton SE (TRATF) reported a strong order intake in Europe, increasing by 56%, which compensated for declines in North and South America, leading to a total order growth of 12%. The company announced a strategic partnership with Applied Intuition to advance software-defined vehicles, aiming to remain at the forefront of development. Traton SE (TRATF) is making significant progress in autonomous driving, with MAN engaged in projects like BeIntelli, testing automated buses in Berlin. Traton Financial Services expanded its operations to new markets, including Mexico, France, and Italy, enhancing its financial services footprint. The company is advancing its battery electric vehicle offerings, with a notable increase in order intake driven by demand for e-trucks, and MAN launching battery pack production in Nuremberg. Traton SE (TRATF) experienced a 10% decline in deliveries and sales revenues due to challenging market conditions in Europe and North America. The company's adjusted return on sales fell to 6.1%, impacted by volume effects, foreign currency headwinds, and higher R&D expenses. Net cash flow from Traton Operations declined to minus EUR111 million, primarily due to lower operating results and higher future investments. The North American market remains depressed, with a 35% drop in order intake and a 12% decrease in unit sales, leading to capacity adjustments. The introduction of Euro VI in Mexico negatively impacted the International brand, contributing to a 10% decline in group unit sales. Q: Can you elaborate on the cost actions planned for International given the current market challenges? A: Michael Jackstein, CFO, confirmed that the margin impact was primarily due to volume drops. They have implemented a hiring freeze and are exploring further cost measures to address the challenging North American market conditions. Q: What is the impact of FX and the China ramp on Scania's margins? A: Michael Jackstein explained that Scania's margin was affected by volume effects in Europe and Brazil, currency impacts from a stronger SEK, and costs associated with the China ramp-up. They do not quantify these effects but expect lower margins compared to the previous year. Q: How is the order momentum in April for European and North American markets? A: Christian Levin, CEO, noted that European order intake has been improving but saw a slight decline after tariff announcements. The North American market remains depressed, with low activity in segments like rentals. They anticipate a recovery in the second half of 2025. Q: Can you provide an update on the China investment and its financial impact? A: Christian Levin stated that the China factory is on track to start production in October 2025. The total investment is around EUR2 billion, with EUR1 billion remaining to be invested in 2025. Half of this will be expensed in the P&L. Q: What are the expectations for R&D expenditures and CapEx in 2025? A: Michael Jackstein mentioned a significant increase in CapEx due to investments in electrification, autonomous driving, and the China plant. R&D expenses are expected to slightly decrease compared to the previous year due to changes in investment focus. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
