Practically fully booked for 2023
Too much optimism is still out of the question for Daimler Trucks
05/09/2023 11:21 am
Truck maker Daimler expects another year with orders above supply. Due to numerous imponderables, the DAX group is still sticking to its forecast. According to experts, that could change by the middle of the year.
Despite the jump in profits in the first quarter, the truck manufacturer Daimler Truck remains cautious about the year as a whole. On the one hand, demand remains high and the supply of semiconductors is better, so that, unlike last year, no production stops are to be expected, explained CFO Jochen Goetz. On the other hand, there are problems with other components, and cyber attacks on suppliers have fueled concerns about the stability of the supply chain. “We expect another year in 2023 with demand well above supply,” said Goetz, but warned at the same time: “We are not sure that the supply chain is stable enough for a higher volume.”
After key data published at the end of April, analysts had expected unexpectedly high operating profit and a return of 8.8 percent with an even higher profit target. So far, the Dax group has been assuming significantly more sales and adjusted operating profit as well as a return in the range of 7.5 to 9.0 percent. If the supply chain is stable, there is upside potential, said Goetz. The analysts at Stifel Research now assume that the outlook will be raised after the second quarter.
From January to March, the Dax group increased sales by 15 percent compared to the same quarter last year to a good 125,000 units. Sales soared by a quarter to 13.2 billion euros, the consolidated result almost tripled to 795 million euros, as the company announced. Higher prices and more service business also contributed to the jump in profits. The price increases of the past year are now taking effect, said Goetz. They should now remain stable, although commodities such as steel continued to rise in price.
Daimler still does not see any signs of order cancellations due to the weak economy. The decline in incoming orders by eleven percent to around 123,000 units in the first quarter is not a cause for concern for the world market leader for heavy trucks. The minus is due to the fact that the order books for 2024 are not yet open, explained Goetz. In the largest market, the United States, Daimler expects increasing demand in 2024 after talks with large fleet customers. The order books in Europe and the USA are so full that Daimler is practically sold out in both large regions in the current year.