Daimler Truck wants stability in Germany as warns of tough times ahead
5:51 am Thursday, November 07th, 2024
By Louis van Boxel-Woolf
(Reuters) – Daimler Truck warned of tough conditions ahead as it reported third quarter earnings on Thursday, with CFO Eva Scherer saying that instability resulting from the German government’s collapse could make things worse.
“Our market share in Germany is about double the market share we have in the EU,” Scherer said, adding: “We see a lot of volatility and uncertainty that is not going to help, we would always want clarity and stability.”
Daimler Truck, which also makes U.S. yellow school buses under the Thomas Built brand, posted marginally better-than-expected third-quarter core profit.
This was driven by its performance in North America, where adjusted earnings before interest and taxes rose 2% to reach 725 million euros. However, core profit at its Europe-focused Mercedes-Benz business, fell 47% to 283 million euros.
“We have been waiting for an economic recovery in Germany for a while now,” Scherer said. “Unfortunately, there are no signs of an improving situation.”
Asked about the U.S., where Donald Trump’s victory threatens possible tariffs on companies like Daimler Truck that manufacture in Mexico, Scherer said the firm could be flexible with its production.
“We are able to produce every truck model and bus model in the U.S. and in Mexico”, she said. “There is no single dependency on a particular product on Mexico.”
Daimler Truck’s overall core profit was 1.19 billion euros for the quarter ending Sept. 30, just above the 1.14 billion euros forecast in a company-compiled poll.
Shares in Daimler Truck, which confirmed its guidance for the year, were up 3.8% at 0758 GMT.
In July it had its annual outlook and said in August that it would reduce hours for some employees in Germany as a result of weak demand in Europe and Asia.
(Reporting by Louis van Boxel-Woolf, Editing by Rachel More, Miranda Murray, Rashmi Aich and Alexander Smith)
