Traton, the German truck and bus subsidiary of Volkswagen AG, has announced its expectations for impressive adjusted profitability in 2023. Thanks to supply-chain enhancements and favorable pricing, the company experienced a significant surge in earnings and revenue during the first half of the year.
The operating profit for the first six months soared to EUR 1.80 billion ($1.99 billion), up from EUR 661 million. On an adjusted basis, Traton’s operating result jumped to EUR 1.97 billion from EUR 798 million, with a margin of 8.6%.
During this period, the company witnessed an impressive 27% growth in revenue, reaching EUR 22.85 billion. Unit sales also rose by 22%, totaling 168,114. However, Traton reported a decline of 24% in incoming orders for the first half.
Traton has raised its forecast range for group adjusted operating profit margin in 2023, projecting that it will approach the upper end of the scale. In May, the forecast range was adjusted to between 7% and 8%. The guidance for full-year revenue and unit sales growth remains unchanged at a range of 5% to 15%.
Traton’s positive performance in the first half sets a promising foundation for future growth. With its focus on efficiency and market dynamics, the company is well-positioned to continue its upward trajectory.