Daimler Truck reported lower third-quarter deliveries, an outlier to its OEM competitors that reported more trucks reaching customers even as concern about a slowdown grows.
The German company reported slightly higher revenue at 13.9 billion euros ($14.84 billion) compared to 13.5 billion euros a year ago. Adjusted return on sales (ROS) in the industrial business increased to 9.8% from 9.4%.
Adjusted earnings before interest and taxes rose to 1.34 billion euros from 1.27 billion. Net profit of 957 million euros was slightly lower than the year-ago 990 million euros, influenced by a one-time low tax rate. Earnings per share amounted to 1.13 euros compared to 1.17 a year ago.
“Despite a volatile environment, we confirm our forecast for the full year 2023 and expect record earnings for Daimler Truck,” CEO Martin Daum said in a news release.
Free cash flow soars
As with its rivals — Volvo Group, Paccar Inc. and Traton Group — Daimler’s free cash flow soared in the quarter, due in part to higher prices. It rose to nearly 1.1 billion euros from 592 million euros in the same quarter last year.
Daimler said its lower deliveries — 128,861 units compared to 134,972 in Q3 2022 — were due to supplier bottlenecks. Supply disruptions have vexed all truck makers for more than two years. Most indications are the problems are easing.
For the first three quarters ending Sept. 30, Daimler’s deliveries of 385,921 outpaced nine-month results of 365,219 in 2022.
Across its five reporting units, Daimler reported mixed results.
In North America, unit sales dropped to 47,249 from 49,171. Revenue fell 7% and EBIT was 4 percentage points lower.
For the full year, Daimler expects the adjusted ROS for its industrial business to be in a range of 8.5%-10%. North America, where Daimler sells the Freightliner and Western Star truck brands, is expected to be in a range of 11%-13%.
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