Daimler, PACCAR, Volvo report decline in sales
Most major truck manufacturers wrapped up their first quarter last month, and released their results this week.
Daimler AG said in its earnings call Wednesday the company’s first-quarter North American truck sales dipped 3 percent and global truck sales fell 6 percent. Earnings from Daimler’s truck division plummeted 69 percent to $151 million, down from $489 million in the same period last year.
“In the first three months of this year, many markets developed worse than expected for economic reasons, especially Western Europe,” Chief Executive Officer Dieter Zetsche said in the company’s report.
Daimler lowered its full-year profit forecast, saying it expected full-year operating profit to be “below the previous year’s level.”
A sharp but expected decline in sales dragged down PACCAR’s earnings 28 percent the company announced Tuesday.
PACCAR earned $236.1 million in the first quarter of 2013, down $91.2 million compared to the $327.3 million posted in the first quarter last year.
Mark C. Pigott, Chairman, Chief Executive Officer and Chairman of PACCAR’s Executive Committee says the company delivered 30,500 trucks during the quarter, which was in line with projections.
“Looking forward, PACCAR truck deliveries in the second quarter are expected to increase 5 to 10 percent compared to the first quarter,” he added.
Volvo AB reported an 11 percent increase in truck orders Thursday, and announced plans to increase production. However, the maker of Volvo and Mack trucks saw a 32 percent dip in truck sales.
Chief Executive Olof Persson says the company saw a boost in demand late in the quarter, and hopes to continue to ride the rising tide.
“I can say…the good demand we have seen continued also in the first weeks of the second quarter,” Persson adds.
Mack and Volvo dealers faired a little better, posting a 14 percent decline in retail sales in the first quarter of the year and moving more than 50,000 units, down from nearly 58,000 last year.
The company reported revenue of $8.9 billion, a drop of 25 percent.