Traton Group reinstates its operating performance to pre-COVID-19 pandemic level in the first half of 2021

Incoming orders in the first half of 2021 around 42% higher than in the same period in 2019 at 170,900 vehicles

The Traton Group reported figures on a level with, and in some cases even significantly higher than, its performance prior to the outbreak of the COVID-19 pandemic across virtually all financial key performance indicators in the first half of 2021. The biggest difference was recorded in incoming orders, which far exceeded the pre-crisis level at 170,900 trucks and buses. They rose by around 42% as against the first half of 2019 (120,500 vehicles). Compared to the 87,400 orders received in the first half of 2020, this is an increase of 96%. Unit sales of the three brands Scania, MAN, and Volkswagen Caminhões e Ônibus grew by 3% to 126,500 vehicles in the period from January to June 2021 compared to the first half of 2019 (123,300 vehicles). Unit sales were up 63% on the first half of 2020 (77,700 vehicles). The increase in the unit sales of trucks (including MAN TGE vans) of 70% to 119,900 (H1 2020: 70,500) vehicles more than offset the 10% decline in the unit sales of buses to 6,500 (H1 2020: 7,200) vehicles. The bus business grew once again in the second quarter of 2021 with 3,400 buses sold, an increase of 6% compared to the bus sales recorded in the second quarter of 2020 (3,200 vehicles).

“Our brands’ extremely competitive portfolio has helped the Traton Group to set a new record in incoming orders as the coronavirus slump gave way to an upturn. Around 170,000 orders in six months is a solid foundation for a very successful fiscal year 2021,” said Matthias Gründler, CEO of the Traton Group.

The Traton Group’s sales revenue rose by 35% to €13.6 billion (H1 2020: €10.1 billion) year-on-year in the period from January to June 2021 and was thus on a level with the first half of 2019 (€13.5 billion). Adjusted operating result came in at €1,128 million. This is a significant increase compared to the figure of €–220 million reported in the first half of 2020 and also 6% higher than the result in the first six months of 2019 (€1,062 million). Adjusted operating return on sales climbed to 8.3% following figures of –2.2% in the first six months of 2020 and 7.8% in the first half of 2019. The Traton Group reported an operating result of €455 million (H1 2020: €–220 million) and an operating return on sales of 3.3% (H1 2020: –2.2%). The book-to-bill ratio, i.e., the ratio of incoming orders to unit sales, was 1.4 and thus higher than in the first half of 2020 (1.1) and the first half of 2019 (1).

The Traton Group at a glance

Sales revenue in the Industrial Business segment rose by 36% to €13.4 billion (H1 2020: €9.9 billion). The increase in sales revenue resulted primarily from the New Vehicles business. Sales revenue in the truck business grew sharply, more than offsetting the very strong decline in sales revenue in the bus business. Adjusted operating result in the Industrial Business segment was €1,028 million (H1 2020: €–265 million). Operating result in the Industrial Business segment was €355 million (H1 2020: €–265 million). Operating return on sales came to 2.7% (H1 2020: –2.7%).

The Financial Services segment reported sales revenue of €419 million (H1 2020: €413 million) and an operating result of €100 million (H1 2020: €44 million). The very strong increase is mainly attributable to lower bad debt allowances on receivables. The higher average net portfolio and higher margins had a positive impact, offset by higher operating costs and negative exchange rate effects.

The operating units at a glance

Scania Vehicles & Services’ unit sales in the first half of 2021 rose by 62% to 49,200
(H1 2020: 30,400) vehicles. The company’s sales revenue increased by 36% to €7.2 billion
(H1 2020: €5.3 billion). Operating result was €860 million (H1 2020: €221 million). Operating return on sales came in at 12% (H1 2020: 4.2%).

MAN Truck & Bus recorded unit sales of 47,300 (H1 2020: 31,700) vehicles in the first half of 2021, an increase of 49%. Its sales revenue rose by a third to €5.4 billion (H1 2020: €4.1 billion). Adjusted operating result was €179 million (H1 2020: €–387 million). This corresponds to an adjusted operating return on sales of 3.3% (H1 2020: –9.5%). Operating result was negatively impacted by expenses of €672 million in connection with the restructuring of MAN Truck & Bus.

Volkswagen Caminhões e Ônibus’s unit sales rose by 89% to 30,000 (H1 2020: 15,900) vehicles in the first half of 2021. Its sales revenue increased by two thirds to €1,021 million (H1 2020: €612 million). Operating result was €77 million (H1 2020: €–10 million). Operating return on sales increased to 7.6% (H1 2020: –1.7%).

SOURCE: Traton Group

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