Half Year 2024 Traton SE Earnings Call Transcript
Key Points
- Traton SE (TRATF) reported a strong first half of 2024, with an 8.8% return on sales, indicating that their strategic ambition of reaching 9% in 2024 is well within reach.
- The company managed to grow its order intake to almost 59,000 vehicles, with particularly strong performance in Brazil and Latin America.
- Despite a 5% decrease in vehicle deliveries, sales revenue only decreased by 1%, reaching EUR11.6 billion, due to good price discipline and a favorable regional and product mix.
- Scania, a brand under Traton SE (TRATF), improved its adjusted return on sales to 14.7% in Q2, driven by strong growth in its heavy-duty truck business in Brazil and ongoing demand for its vehicle services.
- Volkswagen Truck & Bus, another brand under Traton SE (TRATF), increased its revenue by 41% year over year, benefiting from strong market tailwinds and better product positioning.
- Traton SE (TRATF) faced a temporary supplier issue at Navistar in the US due to a fire at a rearview mirror supplier, impacting delivery figures and resulting in a 23% decrease in deliveries.
- The company's cash flow was negatively affected by the Navistar issue, resulting in a minus of EUR374 million in the quarter.
- MAN, a brand under Traton SE (TRATF), suffered from weak demand in Germany and was affected by the new EU safety regulation, leading to a 2% decline in sales revenue.
- Navistar's sales revenue declined by 21% due to the supply chain issue, resulting in a drop in operating profit and adjusted return on sales.
- The European and North American markets are normalizing, with customers becoming more cautious, leading to a decline in unit sales in Q2.
Good morning, everyone, and welcome to Traton's second-quarter 2024 earnings call. My name is Ursula Querette and I am Head of Investor Relations at Traton SE. With me on the call today are Christian Levin, our CEO; and Dr. Michael Jackstein, our CFO and CHRO. Christian will kick off the presentation with the key results and highlights of the second quarter and Michael will guide you through the financial performance and outlook in more detail.
As always, we will conclude the call with a Q&A session, where we welcome questions from financial analysts, investors, and media representatives. To handle potential media inquiries during the Q&A session, Camilla Dewoon, our Head of Corporate Relations, is also present.
This session will be recorded and a replay will be made available on our Investor Relations website as soon as possible after the call. You can also find our half-year financial report, which we published this morning, and the slides to this call on our IR website. Before we start, let me remind you of the disclaimer with
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