Daimler Truck posted the highest growth in the 2nd quarter

Daimler Truck posted the highest growth in the 2nd quarter

Daimler truck reference a profit growth in the second quarter thanks to the increase in its unit sales, sales and EBIT adjustments. Group thus increasing its unit sales to 120,961 units in the second quarter, an increase of 4% compared to 2021. In addition, with the improvement of real prices and the development of after-sales activities, the sales of the manufacturer increased by 18%, i.e. 12.1 billion euros. With demand remaining strong, the order book is at a high level. In addition, the group’s adjusted EBIT reached 1,010 million euros in the 2nd quarter, an increase of 15% compared to last year. In detail, the industrial activities posted an adjusted EBIT of 940 million euros (+ 16% compared to 2021) and adjusted sales revenue reached 8%. Martin Daum, CEO of Daimler Truck, comments: “ We are in the middle of our first year as an independent company […] With an EBIT of 1 billion Euros in the second quarter, our results and achievements provide a solid foundation to build on. We want it now maintain this positive momentum for the second half of the year. ยป

For its part, Mercedes-Benz achieved an adjusted EBIT of 512 million euros and an adjusted return on sales of 10.5%, as well as two positive effects. On the one hand, the one-time non-financial impact on EBIT of around 160 million euros from the licensing income for the localization of Mercedes-Benz trucks in China. On the other hand, rising interest rates facilitated the positive valuation effect associated with reducing long-term debt.

Daimler Truck confirms its year-end forecast

In the Atlantic Ocean, North American Trucks recorded an adjusted EBIT of 523 million euros and an adjusted return on sales of 10.2%, with a virtual balance between prices and costs. Financial services recorded a return on equity of 15.1%. In turn, the Asian Trucks segment was heavily affected by supply constraints and due to the decline of the Chinese market. Finally, Daimler Buses posted a slight decline due to weaker demand in the coach segment. Overall, Daimler Truck posted a free cash flow of 756 million euros in the second quarter, due to higher inventory due to supply constraints and driver shortages (affecting the delivery of trucks to customers), as well as a contribution of 1 million euros 250. to the pension fund as part of the second phase and the payment of a large tax in the second quarter.

Daimler Truck confirms its outlook for the full year, given that global macroeconomic conditions will be favorable to global demand for commercial vehicles for the next six months. The group organizes a sales between 48 and 50 billion euros in 2022. However, this expectation depends on evolution of the Russian-Ukrainian conflict, the pandemic, inflation and rising central bank interest rates.