Daimler Truck Q2 Revenue Rises on Gross sales Tailwind
A Freightliner truck on show at an trade commerce present. Freightliner is a model of Daimler Truck North America. (John Sommers II for Transport Subjects)
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Daimler Truck AG posted a internet revenue of $1.101 billion within the three months that ended June 30, in contrast with $1.037 billion within the year-ago interval, the corporate mentioned Aug. 1.
The Leinfelden-Echterdingen, Germany-headquartered firm reported earnings per share of $1.22 in contrast with $1.23 a yr earlier. The corporate studies in euros.
Daimler Truck’s income totaled $15.25 billion in the newest quarter, in contrast with $13.27 billion within the 2022 interval.
Freightliner and Western Star’s general mother or father firm mentioned worldwide car gross sales elevated 9% within the second quarter to 131,888 from 120,961 a yr earlier.
The corporate produced 132,646 autos in the newest quarter, a 4% improve from 126,935 a yr earlier,
Daimler Truck North America — which incorporates Freightliner and Western Star — noticed a 15% leap in car gross sales to 50,618 in the newest quarter from 44,124 a yr earlier. Of these regional gross sales, some 42,709 got here within the U.S., an 18% leap in contrast with 36,187 in 2022.
DTNA reported income of $6.55 billion within the three months that ended June 30, in contrast with $5.65 billion in the identical interval a yr earlier, a 16% leap.
The income improve was pushed by considerably greater gross sales volumes, improved internet pricing and an enchancment within the aftersales enterprise, the mother or father firm mentioned, though there have been headwinds from inflation-related value will increase, particularly for supplies and personnel.
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DTNA’s Class 8 market share within the second quarter rose to 39.7% from 38.9%, in response to inside Daimler Truck information, though the determine for the newest three-month interval fell in contrast with the primary quarter’s 43.5%.
The unit’s North American Lessons 6-8 market share within the second quarter was estimated at 38.7%, down 1 proportion level from the year-earlier interval’s 39.7% and 4.4 proportion factors in contrast with the primary three months of 2023.
Gross sales within the second quarter noticed a big improve primarily as a consequence of a secure market, the mother or father firm mentioned in its interim report for the quarter, including that the worldwide economic system stabilized within the first half of the yr.
Truck markets have been characterised by continued excessive demand, with the North American marketplace for heavy-duty vans rising by round 19% year-over-year in the newest quarter.
Daimler Truck at present expects general North American heavy-duty truck gross sales to whole 290,000-330,000 this yr.
Daimler Truck CEO Martin Daum talks to attendees on the firm’s Capital Market Day occasion in Boston in July. (Joe Howard/Transport Subjects)
Throughout Daimler Truck’s Capital Market Day in July, the corporate saved its DTNA 2023 gross sales steerage unchanged at 190,000-210,000. The corporate bought 187,000 autos in North America final yr.
CEO Martin Daum mentioned throughout an Aug. 1 earnings convention name that North American heavy-duty truck demand continues to be strong.
Nevertheless, Chief Monetary Officer Jochen Goetz warned of ongoing however easing provide chain constraints, although he mentioned Daimler Truck expects no manufacturing downtime because of this.
Daum added throughout the name that the availability chain had stabilized, however it was “removed from a stroll within the park.” He famous that the corporate has greater than 100 suppliers, a lot of whom might want to perform upkeep in some unspecified time in the future, particularly as they’ve been operating at capability for a few years.
“On daily basis might be one other interruption [and] even when it have been for a few days, it will be troublesome to choose up on the finish of the yr,” he added.
Deutsche Financial institution analysis analyst Nicolai Kempf mentioned in an Aug. 1 analysis word issued after the decision that within the quick time period, the availability chain bottlenecks — particularly the supply of semiconductors — might be a danger for Daimler Truck in addition to rising uncooked materials costs.
“The corporate is operating at full capability, and each provide chain disruption instantly ends in a car loss. It had a small subject with the roof at one among its largest German crops in addition to lacking axles from a provider,” Kempf added.
Analysts on the earnings name quizzed Daum and Goetz about when the corporate’s order guide for 2024 will open as a consequence of considerations over demand within the coming yr.
Goetz mentioned, “After we discuss to prospects today, they’re so assured that we’ll see one other good yr in 2024. The way it precisely will play out is just too early to guage, however we’re far-off from any type of disaster or recession in the case of the truck trade.”
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