Daimler Truck increases sales - orders remain weak
The commercial vehicle manufacturer Daimler Truck was able to increase its turnover in the third quarter despite a drop in sales. Revenue increased by three percent year-on-year to 13.9 billion euros, as the DAX-listed company announced on Tuesday in Leinfelden-Echterdingen near Stuttgart. Adjusted for special effects, earnings before interest and taxes rose by five percent to 1.34 billion euros. Analysts had previously expected a little more for both figures.
The operating margin in the industrial business - i.e. excluding financial services - which is highly regarded by experts, rose by 0.4 percentage points to 9.8 percent. However, order intake continued to slump, with orders received for 99,070 vehicles, a 27 percent drop. At 957 million euros, Group profit was almost as high as the previous year's figure of 990 million euros.
As already known, Daimler Truck sold 128,861 vehicles in the months of July to September. This was a drop of five percent. The management explained the decline primarily with bottlenecks at suppliers. "Despite a volatile environment", CEO Martin Daum confirmed the outlook for the year.
Daimler Truck's improvement in revenue and earnings, despite a decrease in vehicle sales, can be attributed to their successful vehicle construction strategies, as depicted in the quarterly figures. However, the trend of weak orders continues, with a 27% decrease in orders received for vehicles, indicated in the vehicle construction sector's quarterly figures.
Source: www.dpa.com
