Recent announcements from Volvo and Daimler show both companies maintained their revenue levels from the previous year, while Traton and Paccar improved theirs. However, the financial results appeared more promising than the registration and order numbers.
Volvo Group: Revenues Steady Despite Decline in Orders
The Swedish commercial vehicle manufacturer reported revenue of SEK 131.2 billion, comparable to the first quarter of 2023. Group revenues increased in North America (by 2% year-on-year) and South America (by 19%). However, in Europe and Asia, revenues were 1% and 4% lower, respectively.
Europe accounted for SEK 56.86 billion in revenue, while North America contributed SEK 40.9 billion. The Asian market brought in approximately SEK 14.7 billion, and Africa and Oceania made up the rest.
The truck segment accounted for the majority of Volvo Group’s revenue. The truck division generated SEK 89.946 billion, representing over 68% of total revenue. Sales in this segment remained at the same level as the previous year.
The group’s operating profit reached SEK 18.15 billion, slightly higher than last year. In the truck segment, operating profit was SEK 13.07 billion, 2% higher than the previous year.
Net profit for the January-March 2024 period was SEK 14.1 billion, up from SEK 12.9 billion in the corresponding period of 2023.
Volvo Group received 48,700 truck orders in the first quarter of 2024, a clear 19% drop from the 60,000 orders in Q1 2023. In Europe, the decline was 20% (down to 25,100 vehicles), and in North America, orders fell by 37% year-on-year (to 9,620 vehicles). Asia also recorded a decline of 23%, but South America saw a 52% increase in orders.
Volvo Group delivered 55,470 trucks to customers in Q1 2024, 10% fewer than the 61,530 trucks delivered in the same period in 2023. Truck deliveries in Europe decreased by 11% to 29,289, in North America by 6% to 15,056, and in Asia by 35% to 3,717 units. In South America, deliveries increased by 15% to 5,154 units.
While deliveries of electric trucks increased by 32% year-on-year to 907 units, orders for electric vehicles fell significantly to 638 trucks, 23% fewer than in January-March 2023.
Volvo Group also announced that it will expand production capacity by constructing a new plant in Mexico for both Volvo Trucks and Mack Trucks. The factory is scheduled for completion in 2026.
Traton group: increased revenue and profit
While Volvo maintained its revenue levels, Traton Group, which owns the MAN, Scania, Navistar, and Volkswagen Truck & Bus brands, improved its financial results compared to last year. The group generated $11.8 billion in revenue in January-March 2024, 5% more than the previous year.
Operating profit rose by 22.4% to $1.106 billion. Orders in Q1 2024 fell by 3% to 66,400 vehicles. Truck orders saw a milder decline of 1%, reaching 53,000 orders.
Sales in Q1 2024 were 4% lower than in the first quarter of 2023, with Traton delivering 81,100 vehicles. Trucks made up the majority of sales, with 68,800 registrations, down 2% year-on-year.
Mixed brand performance
Among the group’s brands, Scania enjoyed a 6.6% increase in new orders, rising from 18,918 to 20,171. Truck sales also improved to 25,400 units, a significant increase over the 21,611 sold in Q1 2023. This led to better financial results, with Scania Vehicles & Services revenue reaching $4.879 billion (up by 16.9%) and operating profit reaching $700 million (up by 26%).
MAN Trucks & Bus, however, had a less favorable quarter. Orders dropped by 28.4% to 18,682, and truck sales were significantly lower, with 15,188 units (down by 22.7%). Despite this, revenue from MAN increased year-on-year to $3.5 billion. Operating profit also improved by 41% to $278 million due to higher sales of delivery vehicles and buses.
Navistar faced a challenging quarter as well, selling 18,764 trucks, slightly fewer than the 19,246 sold in Q1 2023. However, orders increased by 10% year-on-year to 17,500 vehicles. Financially, Navistar’s revenue fell by 11.2% to $2.43 billion, and operating profit declined from $172 million to $122 million.
Volkswagen Truck & Bus had a good quarter, with orders rising by 31% to 10,085 vehicles. However, truck sales slightly decreased to 9,707 units (down by 0.5%). Sales revenue increased by 9% to $773 million, while operating profit rose by 30% to $85 million.
Daimler Truck: profit despite weaker sales
Daimler Truck maintained its results at last year’s level in Q1 2024. The German manufacturer achieved revenue of $13.3 billion, while EBIT (before tax) rose by 4% to $1.21 billion. Net profit increased by 7% to $847 million.
These improved results occurred despite a 13% drop in sales to 108,911 trucks.
Sales of electric vehicles increased by 183% year-on-year, from 297 in Q1 2023 to 813 in Q1 2024.
In the Trucks North America division, sales decreased by 5% to 46,220 units, but revenue remained steady at $5.8 billion.
In the Mercedes-Benz division, covering the European market, sales volume fell by 8% to 31,885 vehicles, and revenue was 3% lower at $4.826 billion.
The Asian truck market saw a sharp 29% decline in sales volume to 28,457 units, with revenue falling by 14% to $1.5 billion.
Revenues increased in the Bus and Financial Services divisions, which reported growth of 24% and 28%, respectively.
Paccar: strength in North America
Paccar, which owns DAF Trucks, reported revenue of $8.74 billion for the first quarter of 2024, a 3.1% increase year-on-year. The group’s net profit reached $1.2 billion, compared to $733.9 million a year earlier.
The Truck division remains the largest segment of the group, generating $6.54 billion in revenue (74.8% of the group’s total). Pre-tax profit was $881.6 million, slightly lower than last year.
The spare parts division brought in $1.675 billion, while the Financial Services division generated $509.3 million. The spare parts division also recorded a pre-tax profit of $455.8 million.
North America remains Paccar’s most important market, contributing $5.674 billion in revenue, an increase of 12.6%. Europe brought in $1.805 billion, representing a 20% decline year-on-year. Other regions generated $1.264 billion, up by 9%.
Truck deliveries were also primarily concentrated in the U.S. and Canada. Deliveries increased from 26,000 in Q1 2023 to 29,500 in Q1 2024. In Europe, Paccar recorded a significant decline, delivering only 11,600 vehicles, 33% fewer than a year earlier. Sales in other markets also declined to 7,000 trucks, down by 9%.