Daimler Truck’s Q3 core profit slightly beats view; European weakness persists
2:51 am Thursday, November 07th, 2024
By Louis van Boxel-Woolf
(Reuters) -Germany’s Daimler Truck reported marginally better-than-expected third-quarter core profit on Thursday, driven by its performance in North America, even as weakness in Europe continued to weigh.
Adjusted earnings before interest and taxes came in at 1.19 billion euros ($1.28 billion) for the quarter ended Sept. 30, compared to analysts’ average estimate of 1.14 billion euros in a company-compiled poll.
Core profit rose 2% at its Trucks North America segment to reach 725 million euros but fell 47% at its Europe-focused Mercedes-Benz business to 283 million euros.
Better pricing helped Daimler Truck to beat estimates, the company said, even as overall unit sales fell by about 10%.
Daimler Truck’s margin at its truck- and bus-making businesses was 9.3% for the quarter, beating analysts’ expectations of 8.8%.
That was still down from 9.8% a year earlier.
The truckmaker, which also makes yellow school buses under the Thomas Built brand, confirmed its latest outlook for the year.
It had its annual outlook in July and said in August that it would reduce hours for some employees in Germany as a result of weak demand in Europe and Asia.
Orders, an indicator of future sales, fell 4% in the reported quarter to 94,709 units, signalling tougher times ahead.
Daimler Truck Chairman Joe Kaeser had said in September that the firm’s new CEO, Karin Radstrom, would have to get the firm ready for a prolonged slowdown in demand, without expanding on the specific measures that she should take.
($1 = 0.9309 euros)
(Reporting by Louis van Boxel-Woolf, Editing by Rachel More, Miranda Murray and Rashmi Aich)
