TRATON Stock: Profit Warning Triggers Sharp Decline

Volkswagen's commercial vehicle subsidiary TRATON has drastically reduced its financial forecast for 2025, causing significant market concern. The company now expects an operating return of only 6.0-7.0%, down from the previously projected 7.5-8.5%. Sales volume and revenue could decline by up to 10%, a substantial downward revision from earlier estimates. This grim outlook sent the stock plummeting by 7.6% in after-hours trading as investors reacted to the unexpected announcement.

Global Uncertainties Cripple Performance

The disappointing forecast stems from three key problem areas: uncertain US tariff policies, Europe's weakening economy, and growing difficulties in Brazil. TRATON's half-year results already reflect these challenges, with revenue dropping 6% to €21.9 billion and adjusted operating profit plunging from €2.1 billion to just €1.4 billion. The operating margin contracted dramatically from 9.1% to 6.3%. Additionally, expected net cash flow has been slashed by up to 55%, now projected at only €1.0-1.5 billion compared to the original €2.2-2.7 billion target. While EU markets showed some replacement demand growth, this proved insufficient to offset weaknesses elsewhere, making 2025's outlook increasingly problematic.

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Source StockWorld