Daimler Truck Cuts Outlook on Weaker Demand in Europe, Asia
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Daimler Truck Holding AG lowered its outlook for 2024, following other truck makers that have trimmed forecasts on softening sales as demand in Europe and Asia weakens.
The German manufacturer now expects group revenue of as much as 55 billion euros ($59.6 billion) this year, down from as much as 57 billion euros previously.
The shares fell 6.2% in Frankfurt on Aug. 1. The stock is up just over 5% year to date.
Earnings before interest and taxes is expected to be “significantly below” last year, with adjusted EBIT slightly lower, the company said. Second-quarter adjusted EBIT was 1.17 billion euros
Our CEO Martin Daum on the results for the second quarter of 2024. ℹ
More information: https://t.co/BbdcasyWbz#DaimlerTruck #DTR0CK #Q2 — Daimler Truck (@DaimlerTruck) August 1, 2024
The outlook means the group will now “have to work even harder to close the gap” with competitors, CEO Martin Daum said on an earnings call Aug. 1, even though he said the results mark “another solid second quarter.”
Daimler Truck Interim Report Q2 2024
Truck makers are adjusting forecasts due to lower demand levels after working down record order backlogs following the pandemic. Paccar Inc. recently trimmed its outlook for heavy truck sales in the U.S. and Canada, while Volvo AB reduced its projection for the Chinese market, where a protracted real estate crisis is weighing on construction activity.
Daimler Truck flagged earlier in July that it could cut its forecast due to soft demand in China, with the company taking a 120 million-euro impairment charge on the value of its joint venture in the country. In May, the company had noted increasing headwinds in Europe.
Daum said in March that the company expects a boost in sales from the transition to zero-emission vehicles from 2025 or 2026 onward, adding that the slow progress in expanding electric chargers in Europe and the U.S. is threatening the shift.
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