Daimler Truck with strong business development in Q3, updating full-year guidance

Daimler Truck Holding AG (“Daimler Truck”) continued its profitable growth path with a strong business development in the third quarter despite ongoing supply chain constraints and headwinds from raw material and energy prices. The company was able to increase its Group unit sales year-on-year to 134,972 units in Q3 2022 (+ 27 %, Q3 2021: 106,304 units). Supported by this increase as well as improved net pricing, favorable effects from exchange rates (FX) and higher contributions from aftersales business, Group revenue significantly rose by 47 % to € 13.5 billion (Q3 2021: € 9.2 billion). Daimler Truck sees a continued strong demand environment. The order backlog has increased compared to the prior-year level.

Group EBIT (adj.) increased by 159 % to € 1,273 million in the reporting period (Q3 2021: € 491 million). In the Industrial Business (IB), EBIT (adj.) of € 1.223 million was 158 % higher than in the same period of the prior year (€ 475 million). The adjusted Return on Sales (ROS adj.) aggregates to 9.4 % (Q3 2021: 5.4 %).

Jochen Goetz, CFO of Daimler Truck: “Daimler Truck is well on its way to making its first financial year as an independent company also a year of success. This is underlined by our strong business development in the third quarter, despite continuing challenges in the supply chain as well as in raw material and energy prices. Our year-end sprint is now all about maintaining this momentum and delivering as many ordered vehicles as possible to our customers.”

Outlook 2022

Reflecting the favorable business development in Q3, Daimler Truck is now expecting its revenue on Group level to be in the range between € 50 to 52 billion in 2022. For its Industrial Business Daimler Truck is now expecting the revenue to be in the range between € 48 – 50 billion (previously € 46 – 48 billion). Regarding the sustained positive development, the company is now expecting an adjusted Return on Sales (ROS adj.) of 7 – 9 % for the Mercedes-Benz segment (previously 6 – 8 %). Accordingly, the forecast for Group EBIT is updated to “slight increase” (previously “at prior-year level”). For the Industrial Business, Daimler Truck continues to expect an adjusted Return on Sales (ROS adj.) of 7 – 9 % for the fiscal year 2022. The full-year forecasts for the other segments remain unchanged compared to the outlook from the second quarter.

Daimler Truck’s outlook assumption considers that the overall macroeconomic conditions will continue to be comparatively favorable for the global demand in commercial vehicles for the remainder of 2022. The company’s outlook is especially subject to the further developments in the Russia-Ukraine war and its impact on the global economy as well as the development of the very high inflationary pressure and the associated central-bank increases in interest rates. The further macroeconomic, geopolitical as well as the COVID-19 pandemic development and ongoing supply bottlenecks also harbor an exceptional degree of uncertainty. However, Daimler Truck assumes no major production downtimes due to missing parts or due to the unavailability of gas.

Key Figures – Group and Segments

The terms adjusted EBIT (EBIT adj.), adjusted Return on Sales (ROS adj.), adjusted Return on Equity (ROE adj.), Free Cash Flow (industrial business) are defined on page 43 of the Daimler Truck Annual Report 2021.

SOURCE: Daimler Truck