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The operating profit of Traton surged by 19% to 1.14 billion euros (USD 1.23 billion) in the July-September period

Volkswagon’s Traton shares saw a significant rise in third-quarter results. Traton shares jumped by 4% at 07:28 GMT. This is the highest surge in the last three months.

The surge in Traton shares can be attributed to the strong sales of the Swedish unit Scania.

The shares of Daimler Truck and Volvo surged by 1.7% and 1%, respectively by 07:28 GMT.

Traton’s Operating Profit Jumped by 19% in July-September

The operating profit of Traton surged by 19% to 1.14 billion euros (USD 1.23 billion) in the July-September period, while the return on sales hit 9.6%, reported by a press release late Monday after market close.

Analysts Expected Traton’s Operating Profit to Reach 1.02 Billion Euros

According to a consensus estimate compiled by the company, analysts anticipated that the operating profit would reach 1.02 billion euros and the return on sales at 8.7%.

However, Traton chose to maintain its yearly outlook without any adjustments, even though it surpassed expectations.

Volkswagen was struggling with weak demand for its core passenger car brand and competition from China when Traton’s results were revealed. This has led to discussions about potentially shutting down plants in Germany for the first time.

A local trader called the absence of a guidance upgrade and non-disclosure of the order intake for the quarter a "fly in the ointment". This could restrict a favorable response from the stock market.

Traton's strong quarterly outcomes occur while its main parent company is dealing with wider challenges in the truck sector. This signifies resilience in the turbulent world of commercial vehicles.

Traton SE, known as the Traton Group is a subsidiary of the Volkswagen Group. It is one of the world's largest commercial vehicle manufacturers, with its Scania, MAN, International, Volkswagen Truck & Bus, IC Bus and Neoplan brands.

The Group’s portfolio consists of trucks, buses, and light-duty commercial vehicles, as well as the sale of spare parts and customer services. The TRATON GROUP also offers a broad range of financial services to its commercial vehicle customers.