Munich, 21 April 2020 – The ongoing Covid-19 pandemic still has a significant impact on TRATON GROUP's business. As a result, the production chains in the commercial vehicle industry has largely come to a standstill. Supplier bottlenecks led to extensive production stops within the TRATON GROUP.
The aforementioned developments have a negative impact on the expected financial results of the TRATON GROUP.
Based on preliminary figures, the TRATON GROUP expects for the first quarter of 2020:
- Sales revenue of around 5.7 billion Euros.
- Operating profit of around 160 million Euros and a return on sales margin of around 2.8%.
- The industrial business net cash flow amounted to around -170 million Euros. - Industrial business net liquidity amounted to around -160 million Euros.
As already announced on March 23, 2020 the TRATON GROUP has already implemented extensive counter measures to reduce costs. Securing liquidity has the highest priority and optimizing working capital and prioritizing investments are key focus areas.
The TRATON GROUP is planning the phased restart of production in the coming weeks with enhanced safety standards for the workforce.
An updated prognosis on its business development in 2020 is, considering the currently fast-moving changes, still not possible.
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About TRATON SE:
TRATON SE is a subsidiary of Volkswagen AG and a leading commercial vehicle manufacturer worldwide with its brands MAN, Scania, Volkswagen Caminhões e Ônibus, and RIO. In 2019, TRATON GROUP’s brands sold around 242,000 vehicles in total. Its offering comprises light-duty commercial vehicles, trucks, and buses at 29 production and assembly sites in 17 countries. The Company had a workforce of around 82,700 employees worldwide across its commercial vehicle brands as of December 31, 2019.
The Group seeks to transform the transportation system through its products, its services, and as a partner for its customers.