Daimler Truck Holding AG expects to make more money in 2022 than originally expected on the back of strong car sales in the third quarter, better than expected.
In December, Daimler spun off luxury car maker Mercedes-Benz AG into a separate company. It released preliminary numbers ahead of its Nov. 11 earnings report.
Third-quarter profit more than doubled to 1.27 billion euros ($1.28 billion) before interest and taxes, the world’s biggest truck maker said. The average analyst estimate was 1.09 billion euros. Daimler forecast preliminary earnings before interest and taxes that were 159% higher than it was for the third quarter of 2021.
In North America, adjusted EBIT was €738 million, an increase of 111% compared to last year’s EBIT of €351 million. Adjusted return on sales was 12% versus 9.7% a year ago.
Better business conditions for Daimler Trucks
Significant growth in car sales, high prices and good results in after-sales service all contributed to this.
The company, based in Stuttgart, Germany, did not forecast growth this year amid the lingering effects of semiconductor shortages and continued unavailability of other components. Daimler Truck now expects a “slight increase” in profits as some of those problems have disappeared. This made it possible to reduce the significant backlog of trucks in production queues.
Daimler Trucks has set a goal of achieving profitability of 10% or more by 2025, which would bring it closer to the level of rivals Volvo Group and Paccar Inc.
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