Daimler Truck increases sales and earnings despite falling sales - financial expert analyzes quarterly figures

Daimler Truck increases sales and earnings despite falling sales - financial expert analyzes quarterly figures

According to a report from finanzen.net, Daimler Truck was able to increase sales and earnings in the third quarter despite lower sales. Sales rose by three percent to 13.9 billion euros, adjusted earnings before interest and taxes by five percent to 1.34 billion euros. The operating margin in the industrial business rose by 0.4 percentage points to 9.8 percent. However, incoming orders fell by 27 percent. The consolidated profit was almost at the same level as the previous year. The decline in sales was primarily explained by bottlenecks among suppliers. Although the company is optimistic, there are signs of an end to the exceptional economic situation, such as the decline in incoming orders in the year to date by 17 percent in the third quarter to 320,000 units and the lowered expectations for new financing business in the current year. Daimler Truck shares fell to their lowest level after the business figures for the third quarter and recorded a price decline of 4.62 percent.

Daimler Truck also expects weaker demand in Europe and North America in 2024. However, compared to its competitors, the market is assessed as “very solid”. Analysts were critical and concerned about the weak figures and the decline in incoming orders.

According to an analysis by US bank JPMorgan, Daimler Truck had a solid quarter and is rated Overweight, although shares have fallen to their lowest level since early June.

The facts show that, in addition to the positive developments, Daimler Truck is also faced with challenges and a declining market. The fall in share prices and criticism from analysts could affect investor confidence. There is a possibility that the negative trend will continue in the future, especially if the declining demand forecast for 2024 materializes. This could also impact other companies in the industry as they face similar market conditions. Market analysis suggests that further developments need to be monitored to understand the impact on the market and the financial industry.