© Reuters. A flag of Volkswagen’s truck unit Traton SE is pictured at Frankfurt Stock Exchange during Traton’s initial public offering (IPO) in Frankfurt, Germany, June 28, 2019. REUTERS/Ralph Orlowski/file photo
(Reuters) – Volkswagen (ETR:)’s trucks arm Traton on Tuesday forecast a 2024 return on sales in line with the previous year after its annual core earnings almost doubled thanks to record high post-pandemic pent-up demand for commercial vehicles.
The maker of MAN and Scania lorries sees the adjusted operating return on sales in the 8-9% range in 2024, in line with the 8.6% reported in the previous year.
The group’s adjusted operating result jumped by 95% to 4 billion euros ($4.34 billion) in 2023, beating the consensus estimate compiled by Vara Research.
“With the market environment for trucks generally softening in some regions, we will remain extremely focused in 2024 and capitalize on our strengths,” Chief Executive Christian Levin said.
The truck sector braces for a tougher 2024 with analysts flagging a downturn in demand in Europe and North America as it eases from historic highs reached last year thanks to the pent-up demand from the COVID pandemic.
The executive board said it would propose a dividend of 1.5 euros per share, which is more than twice higher than last year.
($1 = 0.9219 euros)
