Daimler Truck rides on rising net profit – 08/11/2022 at 10:26

(AOF) – Daimler Truck, recorded a 15% increase in its adjusted Ebit in the second quarter, to 1.01 billion euros, far exceeding analysts’ expectations thanks to strong demand and positive currency effects . Net profit jumped by 56%, from 608 million euros to 946 million euros, generating EPS of 1.12 euros, against 0.73 euros twelve months earlier. The quarterly turnover of the German manufacturer stands at 12.1 billion euros, above the forecasts which counted on 11.8 billion euros.

Daimler Truck maintained its group-wide outlook of an adjusted return of 7-9% and revenue of 48-50 billion euros, but lowered the adjusted return targets for its Trucks business Asia at 1-3%, versus 3-5% previously, due to the impact of supply chain constraints in China in the second quarter.

“Supply and not demand remains the limiting factor,” the company said in a statement, adding that the order book remains high.


A paradoxical performance

Data from EY highlights that the performance of the world’s top 16 manufacturers was particularly strong in 2021. While the average margin has fallen for three years in a row, from 6.3% in 2017 to just 3.5% in 2020 , this margin stood at 8.5% in 2021. This level is a record for ten years. However, the context was particularly hectic for manufacturers, faced with unprecedented shortages of components. Global sales fell 14% in 2020, the year of the health crisis, to rebound by only 5% in 2021. However, last year, players were able to reap the benefits of their efforts on their fixed cost structure. .

Source link -86