(Reuters) – Germany’s Daimler Truck said on Tuesday it was assessing the future of its China operations as a recovery in the Chinese truck market remained elusive, and flagged a 180 million euro ($195 million) one-off valuation adjustment charge.
The adjustment charge will be booked in the third quarter and will not impact the operational performance of Daimler Truck, the company said.
Daimler booked a 120 million euro impairment charge in the second quarter due to a “persistent weak market” in China.
The adjustment loss comes after Daimler’s third-quarter sales fell by 11% due to poor performance by its Mercedes-Benz Trucks brand and the Asian business.
In September, the truck and bus maker appointed Mercedes-Benz lorry brand head Karin Radstrom as its CEO effective Oct. 1, a little over a month after cutting its revenue guidance and reducing working hours at its German plants due to weak demand in Europe and Asia.
The group faces subdued demand after chips and other parts shortages in the wake of the COVID-19 pandemic pushed up production costs.
($1 = 0.9248 euros)
(Reporting by Angela Christy in Bengaluru; Editing by Alan Barona and Maju Samuel)
