German Manager Magazine: Daimler Truck increases sales and profits003299

The commercial vehicle manufacturer Daimler trucks started the year stable despite the economic downturn. Despite the decline in sales in the first quarter, sales were almost 13.3 billion euros, slightly above the previous year’s figure, as the DAX group announced on Friday in Leinfelden-Echterdingen. Earnings before interest and taxes adjusted for special effects increased by 4 percent to 1.21 billion euros.

In the industrial business – i.e. excluding financial services – Daimler Truck increased the adjusted operating margin by half a percentage point to 9.3 percent. Analysts had expected a smaller increase. Things went better in the lucrative North American market and in the bus division. The consolidated result climbed from 795 million euros a year earlier to 847 million euros.

The management around boss Martin Daum (64) confirmed the annual forecasts. “We are on track with our financial targets for the full year, but are increasingly feeling more headwind in Europe,” said the manager. Daimler Truck shares rose in early trading, but then turned significantly into the red and fell to the bottom of the DAX. Investors are particularly critical of Daimler Truck’s strong position in its domestic market Germany is committed.

New orders from the Swabians have been declining for some time now, partly because the strong orders from and after the Covid pandemic have ebbed. In the first quarter, incoming orders in the group fell by 14 percent to 105,807 vehicles.

Go to Source