(Reuters) -Volkswagen's truck unit Traton reported on Wednesday a 39% drop in adjusted operating profit for the first nine months of 2025, citing lower sales revenue, negative currency effects and the impact from tariffs.

The truckmaker said its adjusted operating profit fell to 2 billion euros ($2.33 billion) in the January-September period, compared with 3.3 billion euros the same period last year.

The adjusted operating profit in Traton's U.S. division international motors fell to 1.6% in the first nine-months from 6.3% a year ago.

European truck manufacturers have been hit by declining demand in North America, driven by weaker freight activity and further exacerbated by market uncertainty stemming from U.S. President Donald Trump's tariffs.

The company confirmed its full-year guidance for unit sales and revenue, but narrowed its adjusted operating margin forecast to the lower end of the 6-7% range.

Incoming orders in the first nine-months rose 7% to 202,100 vehicles compared with 189,800 last year, driven by replacement demand in Europe.

Yet, in Europe "a robust turn-around in demand is still not in sight," CEO Christian Levin said in a statement.

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