The German bus and truck manufacturer Daimler Truck posted surprisingly strong sales in the second quarter, mainly thanks to price increases. Profits from day-to-day business are also at a level that experts never expected. And this despite rising costs for transport, raw materials and energy.
CEO Martin Daum wants to continue this course in the second half of the year, as he said on Thursday. However, the group must continue to keep an eye on rising costs. CFO Jochen Goetz also said the same regarding the confirmed annual forecast for sales and profit.
Daimler Truck has been operating independently since December last year and has separated from the former parent company Mercedes-Benz (then still Daimler). US investment bank Jefferies analyst Himanshu Agarwal saw operating profit well ahead of market expectations. Even excluding favorable one-offs, the group had a solid quarter, said Tom Narayan, a researcher at Canadian bank RBC. However, some investors were expecting a plus in the margin forecast — which may disappoint them.
Sales increased by 18% year-on-year to 12.1 billion euros, as the company announced in Leinfelden-Echterdingen near Stuttgart. Group earnings before interest and taxes adjusted for special effects increased by 15% to just over one billion euros. Vehicle sales increased just 4%, reaching fewer than 121,000 vehicles.
The general economic conditions for global demand for commercial vehicles might also be favorable in the second half of the year. Due to strong demand, Daimler Truck announced the highest price increase of all time this year. In the second quarter, these regulations will take effect for the first time in the most important market, North America, and there will be a further increase in Europe from July.
Cross-divisional, CFO Goetz now expects a slightly higher equity ratio in the financial services business than in the past, but with a slightly weaker Asian business. This is due to weaker equity results from a joint venture in China as Covid lockdowns negatively impacted the economy there. Outside of China, the situation in Asia should improve over the course of the year.
With regard to the outlook, the company assumes that there will be no production stoppage due to gas shortages. Russia’s war in Ukraine and very high inflationary pressure might also play a role – the development of the corona pandemic is also uncertain. (apa/red)
