Daimler Truck Earnings, Revenue Beat Forecasts Despite Sales Drop — Update

By David Sachs

Daimler Truck posted stable revenue and higher earnings ahead of forecasts in the first quarter despite a decline in sales and production.

The German truck and bus maker on Friday backed its full-year guidance but said the market is cooling and warned of unidentified hurdles ahead.

"While we are on track towards our financial targets for the full year, headwinds in Europe are increasing," Chief Executive Martin Daum said.

Still, Daum characterized the quarter as a good start to the year. The manufacturer's key earnings metric rose above last year's total and beat market expectations, boosted by the North America truck division and its bus business. Those wins helped offset a decline a steep earnings drop in the Asia trucks division.

Adjusted earnings before interest and taxes rose to 1.21 billion euros ($1.30 billion), a 4% jump from the first quarter of last year, Daimler Truck said. Analysts had expected adjusted EBIT at EUR1.17 billion, according to the firm's company-compiled consensus.

Daimler Truck's largest market, North America, drove those gains with a 7% rise in adjusted EBIT, while its Asia trucks division posted a 39% drop on lower sales.

As a group, unit sales fell, which the company said it expected. Sales dropped 13% to 108,911. But revenue was stable at EUR13.26 billion, beating the Visible Alpha consensus of EUR12.88 billion.

Net profit rose 7% to EUR847 million, Daimler Truck said.

Production within the industrial business fell 11% while incoming orders fell 14%, the company said.

The industrial business's adjusted return on sales--a profitability measure--was 9.3%.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

May 03, 2024 02:33 ET (06:33 GMT)

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