Business & Investment

Daimler Truck Q1 Fall in net income, rise in profits

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Daimler Trucks reported a 81% decrease in first-quarter net income and a 17% increase in revenue. This is because they faced ongoing supply chain bottlenecks and passed on rising costs amid rising demand.

Dimler’s net income for the period ended March 31 reported in euros was $ 289.8 million, or 33 cents per diluted share, compared to $ 1.52 billion in the year-ago quarter. bottom.

Following the outbreak of Russia’s war with Ukraine, Daimler Truck decided on February 27 to suspend all business activities in Russia until further notice.

In the first quarter, the resulting impairment had a negative temporary impact of $ 179 million. According to a company based in Stuttgart, Germany, the remaining approximately $ 210.7 million of the expected total effect will be amortized at a later point. Given the strong demand in other regions, he said the amount lost in the affected markets was immediately redistributed and absorbed by other markets.

“Given the ongoing challenges in the supply chain and the potential impact of the Ukrainian war on the economy as a whole, strict fixed cost management and cash conservation practices have been used to ensure sustainable profitability. That’s important, said Jochen Goetz, Chief Financial Officer of Daimler Trucks.

Getz

Revenues increased from $ 9.4 billion in 2021 to $ 11.1 billion.

Revenues from financial services reached $ 325.6 million, compared with $ 292.9 million in the previous year.

Overall, Daimler sold 109,286 vehicles this quarter, an increase of 8% compared to 101,364 in the previous year.

Truck sales in North America (US, Canada, Mexico), the largest market, increased 18% from 36,693 units in the previous year to 43,477 units.

The market share of Class 8 trucks in North America was almost flat at 42.6%, but the market share of Class 6-7 trucks in the region increased from 40% in the previous year to 45.3%.

The profit margin on trucks in North America fell from 11.9% in the previous year to 8.4%.

North American truck orders fell 28% in the first quarter to 39,069, down from 54,344 in the previous year. Its backlog remains at record levels and this year you won’t have the opportunity to buy a truck unless you have an order. Some of those orders will slip in 2023, Getz said.

“Daimler Trucks experienced strong first-quarter sales, supported by strong truck sales in the North American and Mercedes-Benz segments, improved net prices, aftermarket sales and positive contributions from the used car business. I was able to benefit from it, “Getts said.

Daimler also reported that it optimized semiconductor allocations, acquired some from Asia for use in North America, and adjusted net prices acted as a countermeasure against chip shortages and headwinds from raw material prices.

R & D spending increased 2% from $ 398.3 million in the previous year to $ 406.7 million.

Orders for zero-emission vehicles increased to 619 units in the quarter, up 266% from 169 units in the previous year. For all of 2021, Daimler reported 987 such orders.

First-quarter ZEV sales were up 155%, from 64 in the previous year to 163. For all of 2021, Daimler reported such sales of 712.

In the future, truck sales in North America will increase from 162,000 in 2021 to 175,000-195,000 in 2022.

Overall, the company expects sales to grow to the range of 500,000 to 520,000 in 2022.

Daimler Truck has updated its 2022 revenue forecast from $ 50.5 billion to $ 52.6 billion. Previous forecasts were $ 47.9 billion to $ 50 billion.

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Daimler Truck Q1 Fall in net income, rise in profits

https://www.ttnews.com/articles/daimler-truck-q1-net-income-tumbles-revenue-climbs Daimler Truck Q1 Fall in net income, rise in profits

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