Truck manufacturer Traton is feeling the effects of the slowdown in the commercial vehicle market.

Incoming orders fell by three percent in the first quarter, as the Volkswagen subsidiary announced on Friday. The European truck business in particular lost momentum, said Traton CFO Michael Jackstein. At the same time, sales fell by four percent. Overall, sales were higher than incoming orders, as a result of which the order backlog had normalized.

In contrast, turnover looked better thanks to price increases: The company, which includes the Scania, MAN, Navistar and Volkswagen Truck & Bus brands, generated revenue of 11.8 billion euros, five percent more than a year ago. At the same time, operating profit improved by 171 million euros to 1.1 billion euros. Traton CEO Christian Levin pointed to the maintenance and spare parts business, among other things, which remains strong. Demand for vehicles in South America is also picking up.

(Report by Christina Amann, edited by Ralf Banser. If you have any questions, please contact our editorial team at Berlin.Newsroom@thomsonreuters.com (for politics and the economy) or Frankfurt.Newsroom@thomsonreuters.com (for companies and markets)