Despite experiencing a decrease in share price, Traton, the truck-and-bus subsidiary of Volkswagen Group, has announced an upgraded profitability guidance following a significant surge in earnings during the first nine months.
As of 0803 GMT, shares in Traton were down by EUR3.5% at EUR17.23.
Traton has raised its full-year adjusted operating profit margin outlook to a range between 7.5% and 8.5%. This is an improvement from the previous forecast of 7% to 8%. The decision to raise guidance comes after the company reported a remarkable increase in nine-month operating profit, rising to 2.695 billion euros ($2.85 billion) from EUR609 million in the previous year.
However, the company-compiled consensus had initially predicted a full-year margin of 8.4%. Citi analysts, in a note released on Wednesday, anticipated that Traton would increase its margin target by 100 base percentage points rather than the 50 points announced.
The margin for Scania, a crucial brand for Traton, concluded the nine-month period at 11.5%, falling short of Citi’s prediction of 13% and the consensus forecast of 12%, according to the analysts.
