FRANKFURT (Dow Jones)–In the third quarter, Daimler Truck Holding AG achieved strong business development that exceeded expectations and raised its outlook for the year. The group has benefited from significantly higher sales, good price enforcement and strong aftersales business, the truck manufacturer said.
Daimer Truck reported adjusted EBIT for the quarter at EUR 1.273 billion, an increase of 159 percent. According to Daimler Truck, analysts had expected only 1.081 billion euros in consensus. Adjusted EBIT in the industrial business increased by 158 percent to 1.223 billion and adjusted return on sales to 9.4 (Q3 2021: 5.4) percent. Daimer stated that the free cash flow in the industrial business was plus 592 (minus 782) million euros.
Trucks North America increased adjusted EBIT by 111 percent and adjusted return on sales to 12.0 percent (9.7 percent). Mercedes-Benz achieved an adjusted EBIT increase of 316 percent and an adjusted return on sales of 9.2 percent (3.1 percent).
In view of the positive development, the Group expects an adjusted return on sales of 7 to 9 percent for the Mercedes-Benz segment in 2022 instead of the previous 6 to 8 percent. The full-year forecasts for the other segments remain unchanged. Accordingly, the forecast for the group EBIT was adjusted to “slight increase” from “at the previous year’s level”. For the industrial business, Daimler Truck still expects an adjusted return on sales of 7 to 9 percent for the 2022 financial year.
Daimler Truck sees sales in the group at 50 to 52 billion euros instead of 48 to 50 billion. Sales in the industrial business should reach 48 to 50 billion instead of 46 to 48 billion euros.
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(END) Dow Jones Newswires
October 26, 2022 14:02 ET (18:02 GMT)
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