The MAUE Economic situation and the tariff of US President Donald Trump are creating the commercial vehicle manufacturer Daimler Truck. Because of the uncertainty on their most profitable market of North America, the Swabians also had to reduce their annual view. But: With the numbers for the first quarter, the company from Leinfelden-Echterdingen exceeded the expectations of experts.
Analyst Nick Housdon from the Canadian Bank RBC regarded the operational result as “impressive”. JPMorgan expert Akshat Kacker even spoke of an outstanding quarter. His numbers were better than feared, Michael Aspinall wrote from the US investment bank Jefferies.
In the first three months, sales in the vehicle business compared to the previous year’s quartal by 7 percent to 11.6 billion euros, the adjusted operational result by 4 percent to EUR 1.16 billion. The bottom line – after taxes – remained 770 million euros.
It was worse, especially in Europe, where CEO Karin Radström from the Mercedes-Benz brand has already prescribed a billion dollar savings program. In this country, too, an unknown number of jobs will fall victim to this. CFO Eva Scherer said: “Our performance in the first quarter reflects our improved resistance and underlines the commitment of our global team.”
Trump effect: Daimler Truck lowers forecast
The increasing economic uncertainty, however, does not pass by Daimler Truck without a trace: Radström is now running out of fewer truck sales on the important market of North America – and thus also of less sales and profits. In the industrial business without financial services, only 48 to 51 billion euros will be targeted in 2025. So far, 52 to 54 billion have been in the planning.
Since Trump’s customs thunderstorms, the freight forwarders in the United States have been unsure how things will continue with the business and how many were, for example, from the country’s ports will still be distributed in the country. The Daimler truck customers therefore consider longer whether they are currently ordering new vehicles. The strong position in the United States with the main brands Freightliner and Western Star made the company become the global market leader in heavy goods traffic. Here the Swabians earn most of their money.
Clear order of order in North America
In the first three months, order intake in North America fell 29 percent to 31,740 vehicles. In other segments – especially in Europe and Asia – the orders grew. Overall, the order minus was lower at three percent to 103,151 vehicles.
Daimler Truck is likely to sell only 155,000 to 175,000 trucks on the North American market this year, so far the management has expected 180,000 to 200,000. In the group, the board is now assuming a paragraph of 430,000 to 460,000 vehicles.
“In view of the increasing economic uncertainty and the resulting pressure on the demand in the USA, we reduced our sales expectation for the overall year, while we left our return view unchanged,” said CFO Scherer. The sales prices and the running costs are therefore not the problem.
In the industrial business, in 2025 sales of 8 to 10 euros should continue to be left over as an operational profit before special items (EBIT). Due to the lower sales and problems in the North American financing business, the company expects the result, which are adjusted for special effects before interest and taxes at the Group level, only in a range from minus to plus 5 percent around the previous year’s result of 4.7 billion euros.
