(Bloomberg) — Daimler Truck Holding AG increased its earnings forecast for the year amid strong demand for vehicles, including from its North American trucks segment.
(Bloomberg) — Daimler Truck Holding AG increased its earnings forecast for the year amid strong demand for vehicles, including from its North American trucks segment.
The company should now see a “slight increase” in earnings before interest and taxes for the year, up from a prior target of no growth, the world’s biggest commercial vehicle maker said late Wednesday.
Daimler Truck disclosed the rosier outlook after a better-than-expected third quarter on the back of a significant increase in vehicle sales, strong prices and solid results in the after-sales business.
Like automotive firms worldwide, the company’s production has been limited by a lack of semiconductors. Manufacturers have recently outlined improving availability of the components, allowing companies to work through a long backlog of orders.
Third-quarter preliminary earnings more than doubled to €1.27 billion ($1.28 billion) before interest and taxes, Daimler Truck said, beating a €1.09 billion average analyst estimate.
Daimler Truck, which split from luxury automaker Mercedes-Benz AG last year, has struggled to turn unrivaled industrial scale into profitability matching the likes of Volvo Group and Paccar Inc. The company is striving for a margin in excess of 10% by 2025.
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