Daimler Truck Earnings, Revenue Beat Forecasts Despite Sales Drop — Update
By David Sachs
Daimler Truck posted stable revenue and higher earnings ahead of forecasts in the first quarter despite a decline in sales and production.
The German truck and bus maker on Friday backed its full-year guidance but said the market is cooling and warned of unidentified hurdles ahead.
"While we are on track towards our financial targets for the full year, headwinds in Europe are increasing," Chief Executive Martin Daum said.
Still, Daum characterized the quarter as a good start to the year. The manufacturer's key earnings metric rose above last year's total and beat market expectations, boosted by the North America truck division and its bus business. Those wins helped offset a decline a steep earnings drop in the Asia trucks division.
Adjusted earnings before interest and taxes rose to 1.21 billion euros ($1.30 billion), a 4% jump from the first quarter of last year, Daimler Truck said. Analysts had expected adjusted EBIT at EUR1.17 billion, according to the firm's company-compiled consensus.
Daimler Truck's largest market, North America, drove those gains with a 7% rise in adjusted EBIT, while its Asia trucks division posted a 39% drop on lower sales.
As a group, unit sales fell, which the company said it expected. Sales dropped 13% to 108,911. But revenue was stable at EUR13.26 billion, beating the Visible Alpha consensus of EUR12.88 billion.
Net profit rose 7% to EUR847 million, Daimler Truck said.
Production within the industrial business fell 11% while incoming orders fell 14%, the company said.
The industrial business's adjusted return on sales--a profitability measure--was 9.3%.
Write to David Sachs at david.sachs@wsj.com
(END) Dow Jones Newswires
May 03, 2024 02:33 ET (06:33 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
Q2 In Review and Q3 2024 Market Outlook
-
5 Stocks to Buy for 3Q 2024
-
Best- and Worst-Performing Stocks of Q2 2024
-
13 Charts On the Market’s Q2 Turnaround
-
10 Top-Performing Dividend Stocks of Q2 2024
-
Markets Brief: US Jobs Report In View as Q3 Begins
-
Q3 2024 Stock Market Outlook: Is the AI Stock Trade Over?
-
Ian Bremmer: 4 Big Geopolitical Risks to Watch
-
Technology: Strength Continues, With Software Presenting the Best Buying Opportunities
-
Energy: OPEC Continues to Operate From a Position of Weakness With Production Cuts Extension
-
Communication Services: Online Advertising Remains Strong, but Growth Will Likely Decelerate
-
3 Stocks to Buy This Summer While They’re Seriously Undervalued
-
10 Top Dividend Stocks for 2024
-
Finding Small-Cap Stock Opportunities In a Big-Cap World
-
The 10 Best Companies to Invest in Now
-
Nike Earnings: Dim Sales Outlook Slams Shares, but Patient Investors Could Be Rewarded