Daimler Trucks Posts Second Quarter Improvements
July 23, 2014
Daimler Trucks' Future Truck, unveiled earler this month. Photo: Evan Lockridge
German truck and automaker Daimler AG reported Wednesday that it’s third quarter underlying profit, along with earnings, both increased in the second quarter of the year.
Earnings before interest and taxes rose 12% from the same time a year earlier while revenue grew 6% during the same time. Net profit fell considerably due to a sale of shares it owned in the European company EADS, now known as Airbus Group
Worldwide, 628,900 passenger cars and commercial vehicles were sold from April through June, which is 4% more than in the same period of last year.
“We are growing profitably, our strategy is bearing fruit,” stated Dr. Dieter Zetsche, chairman of the board of management of Daimler AG and head of Mercedes-Benz cars. “We are steadily continuing along our path. We are satisfied with the second quarter and continue to work consequently on structural improvements.”
Unit sales by Daimler Trucks developed very differently from one region to another also in the second quarter. Worldwide, sales of 126,100 trucks were 2% higher than in the prior-year period. In North America sales rose 18% to 41,100 units. In Western Europe, sales were 7% lower than in the second quarter of last year, primarily due to purchases being brought forward because of the introduction of the new Euro VI emission limits at the end of 2013, according to the company. In Latin America, the current economic situation continued to have a negative impact on demand for trucks.
Daimler Trucks second-quarter revenue of was at the prior-year level. The division’s earnings before interest and taxes increased to 455 million euros, compared to second quarter 2013 of 434 million euros.
“The significant increase in unit sales in the NAFTA region and reduced warranty expenses were the main drivers of the stronger earnings, while ongoing weak demand in Latin America and exchange-rate effects had a negative impact,” the company said in a statement.
Daimler AG is the parent company to Daimler Truck North America, which has the Freightliner, Wester Star and Detroit Diesel brands. The company also produces Mercedes-Benz cars.
Read more about this from Reuters as well as on the Daimler website.