Traton Says Faster Market Recovery and Cost-Savings Helped 3Q Results

   By Kim Richters 
 

Traton SE said late Wednesday that it felt a quicker-than-anticipated a market recovery in the third quarter, which along with cost-cutting measures helped its performance and lifted some of its main financial indicators "well above market expectations."

The Volkswagen AG-subsidiary said adjusted operating profit for the quarter came in at around 210 million euros ($249.1 million). Excluding adjustments of around EUR50 million, operating profit was around EUR160 million.

Quarterly sales for the truck maker were around EUR5.7 billion and industrial business net cash flow was about EUR200 million for the period.

For the first nine months of the year, Traton posted an adjusted operating loss of around EUR10 million and sales of approximately EUR15.7 billion. All figures are preliminary, Traton said, without providing a year-earlier comparison.

According to previous year's statement, the truck maker made EUR19.8 billion in revenue and an operating profit of EUR1.5 billion in the first nine months of 2019.

Traton said the coronavirus pandemic continues to significantly affect its business and it that it expects the fourth quarter to have "the usual year-end seasonality pattern."

However, it also anticipates "a positive impact for the remainder of the year" due to third-quarter developments. It plans to provide an updated outlook for 2020 and nine-months results by Nov. 10.

Write to Kim Richters at [e-mail]

(END) Dow Jones Newswires

October 22, 2020 02:46 ET (06:46 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.