Daimler, Volvo Boost 2015 North American Truck Outlook
Truck manufacturers Daimler AG and Volvo Group both reported higher truck orders and sales for the fourth quarter, and both predicted a stronger North American market for 2015.
But both companies’ overall earnings were hit by fourth-quarter set-aside charges for potential European Union antitrust truck-pricing fines. Daimler’s was 600 million euros ($685 million), while Volvo’s was 3.79 billion Swedish kronor ($460 million).
In North America, Daimler makes Freightliner and Western Star trucks as well as Detroit brand engines and components, and Volvo manufactures Volvo and Mack trucks, engines and transmissions.
Daimler Trucks “anticipates a significant increase in unit sales in 2015,” the Germany-based company reported Feb. 5.
The truck unit’s fourth-quarter earnings before interest and taxes declined 13% to $564 milion (494 euros), including the set-aside charge, while full-year EBIT rose 15% to $2.2 billion (1.9 billion euros). Revenue rose 4% in the quarter to $10 billion (8.8 billion euros) and 3% for the year, to $37 billion (32.4 billion euros).
Daimler’s U.S. retail truck sales jumped 19% in the quarter to just over 38,000, while full-year sales were up 20% to almost 138,000. Its U.S. truck orders doubled in the quarter year-over-year to 75,500 and rose 50% for the year to almost 190,000.
North America “promises to deliver the most positive development” this year, Daimler said, projecting truck demand will rise about 10% in the region.
Volvo, for its part, raised its 2015 North American industrywide commercial-vehicle market forecast to 310,000 from a previous 280,000, citing a “robust manufacturing environment.”
“We do see some light spots in the economy and also in the truck market” in Europe, CEO Olof Persson said on a conference call with reporters.
Including the antitrust charge, Volvo’s truck unit posted an overall operating loss for the quarter of $65 million (542 million kronor), and the unit’s full-year operating income slipped to $675 million (5.6 billion kronor) from $820 million (6.8 billion kronor).
Its North American net sales rose 41% in the quarter to 15,400 and 33% for the year to 53,700. Nafta-region truck orders jumped 48% in the quarter to 24,700, with Mack’s orders more than doubling to 12,600. Full-year orders rose 39% to almost 72,000.
Overall, Volvo Group posted an overall loss for the quarter, largely on a downturn in its construction equipment unit.
