German truckmaker Traton (8TRA.DE), majority-owned by Volkswagen (VOWG_p.DE), on Friday posted a 7% rise in first-half operating profit buoyed by higher prices, even as demand remained lacklustre in Europe.
Operating profit rose to 2.1 billion euros ($2.3 billion) on sales revenue up 2% to 23.4 billion euros, while unit sales fell 5%.
Traton's operating margin rose to 9.1% from 8.6% a year earlier.
South America, where Traton made a quarter of its truck sales last year by volume, was a bright spot.
The operating margin at Traton's Volkswagen Truck & Bus brand, which operates there, rose the most of all Traton's brands, to 11.8% from 9.3%.
Improved "unit price realisation" in Brazil was behind the rise, Traton said.
Truckmakers are raising prices in an attempt to boost margins as demand slows after pent-up pandemic demand waned.
Price rises at peer Volvo AB (VOLVb.ST) helped it beat second-quarter operating margin and profit expectations last week.
Europe, which made up about 40% of Traton's truck sales last year by volume, is likely to weigh on the firm for the coming quarters, Traton said.
Truck order intake by volume fell 28% in Europe in the first half of the year compared to the first half of 2023, but rose 36% in North America and 48% in South America.
Competitor Daimler Truck (DTGGe.DE) last week said its guidance for the year was "under review" following a weak performance at its European business.
Traton confirmed its guidance for the year, which includes an adjusted operating margin of between 8% and 9%.
CEO Christian Levin said on an earnings call that the firm's results showed that its "strategic ambition of reaching 9% in 2024 is definitely well within reach".
($1 = 0.9211 euros)
