• ITVI.USA
    14,959.950
    116.940
    0.8%
  • OTLT.USA
    2.933
    0.012
    0.4%
  • OTRI.USA
    19.350
    0.220
    1.2%
  • OTVI.USA
    14,926.910
    120.050
    0.8%
  • TSTOPVRPM.ATLPHL
    2.910
    -0.050
    -1.7%
  • TSTOPVRPM.CHIATL
    3.790
    0.080
    2.2%
  • TSTOPVRPM.DALLAX
    1.460
    0.170
    13.2%
  • TSTOPVRPM.LAXDAL
    3.740
    0.020
    0.5%
  • TSTOPVRPM.PHLCHI
    2.270
    0.030
    1.3%
  • TSTOPVRPM.LAXSEA
    4.150
    -0.010
    -0.2%
  • WAIT.USA
    131.000
    -2.000
    -1.5%
  • ITVI.USA
    14,959.950
    116.940
    0.8%
  • OTLT.USA
    2.933
    0.012
    0.4%
  • OTRI.USA
    19.350
    0.220
    1.2%
  • OTVI.USA
    14,926.910
    120.050
    0.8%
  • TSTOPVRPM.ATLPHL
    2.910
    -0.050
    -1.7%
  • TSTOPVRPM.CHIATL
    3.790
    0.080
    2.2%
  • TSTOPVRPM.DALLAX
    1.460
    0.170
    13.2%
  • TSTOPVRPM.LAXDAL
    3.740
    0.020
    0.5%
  • TSTOPVRPM.PHLCHI
    2.270
    0.030
    1.3%
  • TSTOPVRPM.LAXSEA
    4.150
    -0.010
    -0.2%
  • WAIT.USA
    131.000
    -2.000
    -1.5%
Company earningsEquipmentNewsTop StoriesTrucking

Traton posts big 9-month financials with Navistar included for first time

Volkswagen’s truck unit overcomes chip shortages and supply constraints

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 (OTC: 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.

Navistar will destroy old engines, pay $52M to settle federal complaint

Traton shakes up Navistar C-suit, ousting CEO Lisboa

Navistar clears final regulatory hurdles to become part of Traton

Click for more FreightWaves articles by Alan Adler.

Alan Adler

Alan Adler is a Detroit-based award-winning journalist who worked for The Associated Press, the Detroit Free Press and most recently as Detroit Bureau Chief for Trucks.com. He also spent two decades in domestic and international media relations and executive communications with General Motors.