July 26 Reuters German truckmaker Traton, majorityowned by Volkswagen, on Friday posted a 7 rise in firsthalf 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.

Traton39;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 Traton39;s Volkswagen Truck Bus brand, which operates there, rose the most of all Traton39;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 pentup pandemic demand waned.

Price rises at peer Volvo AB helped it beat secondquarter operating margin and profit expectations last week.

Europe, which made up about 40 of Traton39;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 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…