Daimler’s second quarter at a glance:
- Definitive agreements were signed for the integration of Mitsubishi Fuso and Hino Motors.
- Daimler Truck global sales were down 4.8% year-over-year, but sales of zero emissions vehicles increased 90%.
- In North America, truck sales were down by 10,000 units, a 20% drop year-over-year.
Truck sales for Daimler North America were off 20%, the company reported in a second quarter earnings call Friday. Macroeconomic uncertainties lead the company to revise forecasts for the remainder of the year downwards.
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"Recent months have shown a clear slowdown in order levels, reflecting ongoing market uncertainty," CFO Eva Scherer says. "In response, we have adjusted our capacity and lowered our market guidance and volume outlook accordingly."
Daimler revises forecasts
The tumbling North American market pushed Daimler's expected sales numbers down to 135,000-155,000 units from 155,000-175,000 units. The company also adjusted the expected return on sales (ROS) for North America to between 10-12%, down from 11-13%.
In turn, the whole Daimler Trucks group adjusted EBIT was bumped lower from $4.2 billion-$4.7 billion. Revenue dropped to $5.1 billion-$5.4 billion; previously, it was expected to range $5.5 billion-$5.9 billion.
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"Despite significantly lower volumes, we expect to achieve 10-12% profitability for 2025 in North America, highlighting the resilience of our business," Scherer says. "With all other segments performing steadily, we remain committed to delivering another solid result in 2025, targeting an adjusted return on sales of 7-9% in our Industrial Business. At the same time, we are focused on strong cash generation through year-end. The launch of our new share buyback program in Q3 underscores our confidence in Daimler Truck's continued performance."
The company says the updated guidance assumes Daimler Truck will continue to operate under the United States-Mexico-Canada Agreement as it stands. Any changes in tariff or other policies may require another revision, it warns.
Global outlook
Worldwide, Daimler numbers are looking up. A bright spot is a 90% increase in zero emissions vehicles sales and improved profitability in Trucks Asia and Mercedes-Benz Trucks.
Globally, Daimler Truck reported 9.3% adjusted ROS. Mercedes-Benz Trucks improved profitability to 5.9% compared to 3.1% over the same quarter last year. Daimler Buses had an adjusted ROS of 10% and Trucks Asia increased its profit margin to 5.4%, versus 4.9% in the same period last year.
"While Trucks North America achieved remarkable results in a challenging market, Mercedes-Benz Trucks, Daimler Buses and Trucks Asia all increased their profitability versus the previous year," says Karin Radstrom, CEO. "For the second half of the year, we continue to focus on navigating the dynamics and uncertainties."
