Company that acquired Navistar reports steady performance during first half of 2022

A subsidiary of Volkswagen that acquired Navistar in 2021 has reported a steady performance for the first half of this year amid supply chain issues.

Traton, which acquired Navistar for $3.7 billion, reported that sales revenue have grown to $18.3 billion during the first six months of this year. That increase was due in part to the consolidation of Navistar, which helped contribute to the 137,300 vehicle unit sales reported during the first half of the year.

The number of unit sales reported represented a 9% increase for the company when compared to the same period last year. However, incoming orders, that numbered at 164,200 vehicles for the first half of the year, were down by 4% due to continuing supply bottlenecks as well as production stops related to the war in Ukraine.

This information was shared in a recent news release by Traton that also reported a net operating income of $672.9 million for the first six months of this year, which was up $209.7 million when compared year-on-year.

Those monetary figures highlighted in the news release have been converted by this news organization from euros to dollars.

However, when those figures were adjusted to take into account market conditions, the company instead saw that its adjusted net operating result was $335.8 million lower than the same period during the previous year, which saw an operating result of $812.2 million. The decrease was due to substantial effects from ongoing supply bottlenecks and increased procurement prices.

“We are dealing with a lot of major challenges: although the availability of semiconductors and other key components is slowly improving, it has not yet returned to normal. At the same time, raw materials and energy are becoming more expensive and logistics resources are tight,” said Traton’s CEO Christian Levin.

“Nevertheless, our Group is becoming more and more adept at handling this situation — our hard work to get there is paying off. And even in times of economic difficulty, we are not losing sight of what matters to us: helping to transform our industry into a more sustainable future,” he added.

Traton acquired Navistar after first announcing interest to purchase the truck manufacture’s remaining shares in 2020. At the time, Volkswagen had a 16.8% stake in Navistar.

Stockholders of Navistar approved a proposal by Traton in March 2021 to acquire all of the outstanding common shares of Navistar at a price of $44.50 per share in cash or $3.7 billion in total.

Representatives of Navistar said during the acquisition process that the merger would accelerate Navistar’s growth, providing it with access to new technologies, products and services while taking advantage of Traton’s global scale.

Navistar is a major employer in Clark County and has long history in the area. It currently employs more than 1,000 people at its Springfield facility that builds medium-duty trucks as well as cutaway vans for General Motors.

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