Daimler Truck believes that the company’s supply will not be significantly affected following the invasion of Ukraine by Russia
Marrakesh, March 24. (Morocco-News) –
Commercial vehicle manufacturer Daimler Truck recorded a net profit of 2.383 billion euros in the year 2021, which comes out of the “red” of 131 million euros in 2020, the company said on Thursday.
The company explained that these results were due to strict fixed cost discipline and that the company met its financial targets for the year despite supply chain headwinds.
“In 2021, we have significantly improved our profitability. This was due to increased sales volumes and improved pre-owned and followingmarket business, while rising raw material costs and supply chain constraints had negative effects.” , underlined Jochen Goetz, CEO of the company.
Thus, the operating profit of the new multinational from the Mercedes-Benz group (formerly Daimler) increased by 584% during the last financial year to reach 3,357 million euros, while its pre-tax profit rose by 880 % to reach 3,274 million euros.
Between January and December 2021, the company recorded a turnover of 39.764 billion euros, which translates into an increase of 10% compared to the 36.013 billion euros it achieved in 2020, in due to its worldwide registrations which increased by 20% to reach 455,400 units.
The Daimler Truck split was approved last October, and on December 10 the company debuted on the Frankfurt Stock Exchange (Germany), with its shares trading at 28 euros following the bell, bringing the market value of the company to around 24 billion euros.
FORECASTS FOR 2022
For this fiscal year, Daimler Truck estimates that the company’s supply will not be significantly affected following the Russian invasion of Ukraine.
Extraordinary expenses resulting from the interruption of activities in Russia will not be taken into account in the operating result of the first quarter. The currently foreseeable operational effects, such as the interruption of activities in Russia, as well as the currently higher costs of raw materials and energy, are included in the forecast for 2022.
Daimler Truck thus forecasts an increase in unit sales in a range of between 500,000 and 520,000 units in 2022 and a significant growth in turnover in a range of between 45.5 and 47.5 billion euros.
In addition, it estimates a significant increase in its adjusted operating margin and adjusted return on sales (RoS) for the industrial business, between 7% and 9%.
