Traton SE, the parent company of Navistar International, reported dramatically higher second-quarter sales and profits compared with a year earlier. But economic uncertainty resulted in significantly lower incoming orders.
Traton’s adjusted operating profit in the April-June period reached $1.15 billion compared with $438.5 million a year ago. Q2 revenue totaled $12.92 billion compared with $10.47 billion in the same period a year earlier.
Navistar reported adjusted operating profit of $190.4 million, more than double the $89.7 million from a year ago. Revenue rose 10% to $3.15 billion from $2.88 billion.
Navistar’s sales totaled 23,243 vehicles, a 15% improvement from 20,263 a year earlier. Of that, 19,595 were trucks, a 14% year-over-year increase from 17,176.
“We are delivering on our short term goals, at the same time as we are setting a foundation for the future,” Navistar CEO Matias Carlbaum said in a LinkedIn post.
Pull-ahead results in dramatic drop in orders
Navistar’s incoming orders for new equipment fell almost as dramatically as its sales and profits grew. Bookings for trucks and buses totaled 5,226 compared to 20,608 a year ago. Of the total, 2,803 were trucks, an 84% year-over-year decline from 17,678.
Volvo Group and Paccar Inc. also reported pressure on incoming orders as part of earlier Q2 earnings reports. Both companies said they have ample backlogs of previously placed orders to continue uninterrupted production. At Navistar, orders pulled ahead into 2022 and questions about regulatory changes impacted order books.
Logistics shortages persist
Supply chain disruptions eased in Q2, allowing higher production, but logistic issues persist in certain areas, Traton said. The improvement impacted North American Class 6 and 8 sales at Navistar.
“However, we are also seeing transportation activity slow down in some markets,” Traton CEO Christian Levin said. “Inflationary pressures continue, and we are witnessing a significant increase in interest rates.”
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