GDANSK (Reuters) – Shares in Traton rose on Tuesday after Volkswagen (ETR:)’s truck unit reported third-quarter results above expectations driven by robust sales in its US brand International and Swedish unit Scania.
Traton shares were up 4% by 0728 GMT, to their highest in three months, while peers Daimler (OTC:) Truck and Volvo (OTC:) were also up 1.7% and 1%, respectively.
The operating profit jumped by 19% to 1.14 billion euros ($1.23 billion) in the July-September period, while the return on sales hit 9.6%, according to a press release published late Monday after the market close.
Analysts expected the operating profit at 1.02 billion euros and the return on sales at 8.7%, according to a consensus estimate compiled by the company. Nevertheless, Traton decided to keep its annual guidance unchanged despite the beat.
A local trader called the absence of a guidance upgrade and non-disclosure of the order intake for the quarter as a “fly in the ointment” that should limit positive share reaction.
Traton results come as its parent Volkswagen is struggling with weak demand for its core passenger car brand and competition from China, and is considering plant closures in Germany for the first time.
($1 = 0.9237 euros)