Latest news with #Traton
Yahoo
28-05-2025
- Automotive
- Yahoo
Scania to launch new production hub in China in October
Swedish truck manufacturer Scania AB confirmed it is scheduled to begin operations at its new EUR 2 billion production hub in China in the fourth quarter of 2025, according to reports citing the company's CEO Christian Levin. Scania, part of the Traton group which also includes brands such as MAN, International and Volkswagen Truck & Bus, currently has two main global manufacturing hubs - Sweden and in Brazil - supplying built-up vehicles and components to world markets. The new production hub in Rugao, in China's Jiangsu province, will ultimately have a production capacity of 50,000 trucks per year. The facility is expected to help lift the brand's sales in the world's largest vehicle market and will also export built-up vehicles to other markets in Asia. Mr Levin, who also heads Traton, expects the new Rugao facility to help the company reduce its delivery times across the Asia-Pacific region. He pointed out that currently "if a customer in Asia wants to buy a Scania, they have to get it from Europe or Brazil, which means a wait of maybe six or seven months." Scania's stronger manufacturing presence in China will also help improve its access to next-generation truck technologies that are available in the country, including zero-emission drivetrains and smart, connected technologies. The CEO confirmed 'we want to tap into that. We want to be part of the ecosystem. We want to be close to the competition.' Scania recently launched a new US$ 350 million investment at its existing operations in Sao Paulo, Brazil, to upgrade its production facilities and introduce clean transportation solutions including electrified powertrains. "Scania to launch new production hub in China in October" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
South China Morning Post
27-05-2025
- Automotive
- South China Morning Post
Sweden's Scania makes €2 billion China bet with new factory, eyeing Asian growth
Swedish truck maker Scania will launch a €2 billion (US$2.28 billion) Chinese production hub in October, its third global manufacturing base alongside facilities in Sweden and Brazil, according to CEO Christian Levin. The new factory in Rugao, in China's eastern Jiangsu province, will eventually reach a production capacity of 50,000 vehicles a year – nearly double what Scania's Brazilian plant produced in 2024. It would also boost demand for parts made in South America, said Levin, who also runs group Traton, which includes the brands Scania, Man, International, and Volkswagen Truck & Bus. Setting up in the Chinese market also gives Scania access to the next generation of transport technology in China. 'We want to tap into that,' he said. 'We want to be part of the ecosystem. We want to be close to the competition.' Scania is also kicking off a new four-year investment cycle in Brazil, which became its second hub after Sweden in the late 1950s, with about US$350 million of capital spending at its local hub, based in Sao Paulo state, by 2028. Part of the investment is going to initiatives concerning clean transport, including electrification. With its main production hubs in Europe and South America offering the same products in different geographies, Scania has been able to expand its presence in several parts of the world.
Reuters
26-05-2025
- Automotive
- Reuters
Scania readies 2 bln euro China hub, eyeing Asian growth
SAO PAULO, May 26 (Reuters) - Swedish truck brand Scania will launch its 2 billion-euro ($2.28 billion) Chinese production hub in October, its third global manufacturing base alongside facilities in Sweden and Brazil, Chief Executive Christian Levin said in an interview. The new Chinese factory will eventually reach a production capacity of 50,000 vehicles — nearly double what Scania's Brazilian plant produced last year — while boosting demand for parts made in South America, said Levin, who also runs group Traton ( opens new tab, whose portfolio includes the brands Scania, MAN, International, and Volkswagen Truck & Bus. Scania is also kicking off a new four-year investment cycle in Brazil, which became its second hub after Sweden in the late 1950s, with 2 billion reais ($350 million) of capital spending at its local hub, based in Sao Paulo state, by 2028. Part of the investment is going to initiatives concerning clean transportation, including electrification With its main production hubs in Europe and South America, offering the same products in different geographies, Scania has been able to expand its presence in several parts of the world. "It has made us very strong in Latin America and Europe, but we are quite weak in Asia," Levin said. "If a customer in Asia wants to buy a Scania, they have to get it from Europe or Brazil, which means a wait of maybe six or seven months." Setting up in the Chinese market also gives Scania access to the next generation of transportation technology in China. "So we want to tap into that," he said. "We want to be part of the ecosystem, we want to be close to the competition." Scania's big bet on China comes amid rising trade tensions with the United States, which Levin called "detrimental to the world overall." "It goes away from the world order and from free trade as a fundamental mechanism to make the world richer and a better place to live in," he said. By contrast, Levin was optimistic about the prospects for regional trade bloc Mercosur, comprised of Brazil, Argentina, Paraguay and Uruguay, which is looking to ratify a new trade agreement with the European Union, finalized in December talks. "Now if Mercosur is really coming back, it will make us even stronger."
Yahoo
25-05-2025
- Business
- Yahoo
Traton SE (ETR:8TRA) Shares Could Be 40% Below Their Intrinsic Value Estimate
The projected fair value for Traton is €50.69 based on 2 Stage Free Cash Flow to Equity Traton is estimated to be 40% undervalued based on current share price of €30.30 The €34.43 analyst price target for 8TRA is 32% less than our estimate of fair value How far off is Traton SE (ETR:8TRA) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the forecast future cash flows of the company and discounting them back to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. There's really not all that much to it, even though it might appear quite complex. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. Our free stock report includes 2 warning signs investors should be aware of before investing in Traton. Read for free now. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €2.23b €2.30b €2.53b €2.32b €2.19b €2.12b €2.07b €2.05b €2.05b €2.05b Growth Rate Estimate Source Analyst x5 Analyst x4 Analyst x4 Analyst x1 Est @ -5.41% Est @ -3.41% Est @ -2.00% Est @ -1.02% Est @ -0.33% Est @ 0.15% Present Value (€, Millions) Discounted @ 9.1% €2.0k €1.9k €2.0k €1.6k €1.4k €1.3k €1.1k €1.0k €936 €860 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = €14b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 1.3%. We discount the terminal cash flows to today's value at a cost of equity of 9.1%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €2.0b× (1 + 1.3%) ÷ (9.1%– 1.3%) = €27b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €27b÷ ( 1 + 9.1%)10= €11b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is €25b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of €30.3, the company appears quite good value at a 40% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Traton as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.1%, which is based on a levered beta of 1.802. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Traton Strength Debt is well covered by earnings. Dividend is in the top 25% of dividend payers in the market. Weakness Earnings declined over the past year. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio and estimated fair value. Threat Debt is not well covered by operating cash flow. Paying a dividend but company has no free cash flows. Annual earnings are forecast to grow slower than the German market. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. What is the reason for the share price sitting below the intrinsic value? For Traton, we've compiled three fundamental factors you should further examine: Risks: As an example, we've found 2 warning signs for Traton (1 is a bit unpleasant!) that you need to consider before investing here. Future Earnings: How does 8TRA's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every German stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Reuters
14-05-2025
- Automotive
- Reuters
Daimler Truck expects Q2 North American orders to be roughly on Q1 levels
May 14 (Reuters) - Daimler Truck ( opens new tab, one of the world's biggest truckmakers, told analysts on Wednesday that second-quarter orders in its Trucks North America segment will be roughly on par with the first quarter levels. Late on Tuesday, the company cut its full-year operating profit and revenue forecast, reflecting lower expectations for its North American business on heightened demand uncertainty due to U.S. duties. The effect of U.S. tariffs on first-quarter profitability was minor, chief financial officer Eva Scherer said on the call, adding the impact was mainly on demand. Profitability is ensured for the North American segment in the second quarter though lower than in the first quarter, Scherer said. However, the order books for the second half of the year was not filled yet and the company needed a stronger order momentum, she added. In April, Daimler's peer Traton ( opens new tab said U.S. truckers were deferring orders over fears of a global recession, while Swedish Truck maker Volvo ( opens new tab cut its North America truck market outlook amid tariff-related uncertainty. As for the U.S.-China trade deal slashing reciprocal tariffs, it is too early to predict but the deal may be positive for orders in the second quarter, Scherer said. Commenting on the billion-euro cost-cutting programme launched in March, Scherer said the company booked a provision in the mid-three-digit million euros range in the second quarter. The truckmaker has already received the necessary approval to reduce personnel-related costs and increase flexibility of the German locations, the company said in a press release. As for the European market, Daimler Truck prioritizes profitability over the market share, the finance chief said, adding the company did not want to regain the lost market share in Europe through excessive incentives.
