Traton Achieves Record-Breaking Sales and Proposed Dividend Increase

Record-Breaking Sales Performance

Traton, the commercial-vehicle maker under Volkswagen, experienced a surge in sales revenue reaching a new high of 46.87 billion euros, up from EUR40.33 billion in the previous year. The company's truck and bus sales saw a substantial increase of 11%, totaling 338,183 units sold.

Impressive Financial Results

The operating result for Traton soared to EUR3.76 billion, a marked improvement from EUR1.56 billion in the previous year. Additionally, the adjusted operating result closed at EUR4.03 billion, compared to EUR2.07 billion in the prior year. Notably, Traton exceeded expectations with an adjusted margin of 8.6%, surpassing its guidance target of 8.5%.

Dividend Proposal

In a move to reward shareholders, Traton proposed a dividend of EUR1.50 per share, a significant increase from EUR0.70 in the previous year. This higher dividend translates to a payout of EUR750 million for the company.

Factors Driving Success

Traton attributes its success to various factors including a rise in unit sales, positive market and product mix, improved pricing strategies, and growth in its vehicle-services segment. Despite a decline in incoming orders by 21% to 264,798 units due to softened demand in Europe, the company delivered strong financial results.

Future Outlook

Looking ahead, Traton anticipates a potential decrease of up to 5% in unit sales and revenue, but also foresees a possible increase of up to 10%. The company expects an adjusted operating return on sales ranging from 8% to 9% and projects net cash flow from operations between EUR2.3 billion and EUR2.8 billion. Despite challenges within the industry, Traton remains optimistic about its outlook.

Strong Cash Flow Performance

Traton reported a notable shift in net cash flow, swinging to EUR3.59 billion after experiencing an outflow of EUR625 million in the previous year.

Overall, Traton's remarkable financial performance and optimistic outlook reflect its position as a key player in the commercial-vehicle sector.