Daimler Truck's profit in the second quarter of this year fell by 48 percent.
The group result for the period dropped to 128 million euros from 245 million euros in the same quarter of the previous year. The Dax-listed manufacturer is based in Leinfelden-Echterdingen near Stuttgart, Germany.
128 million euros
Daimler Truck group result in the second quarter
While revenue in the industrial business, excluding financial services, rose by 6 percent during the second quarter, the adjusted profit margin before interest and taxes in that segment decreased by 2.4 percentage points to 6.8 percent.
Tariffs burdened profitability in the North American market. Daimler Truck CEO Karin Radström confirmed the group's forecast.
Updates
Although the company previously cited tariff burdens as the cause of its 48% profit decline, new figures show revenue rose 5% to €12.3 billion and sales increased 8% to 86,707 trucks and buses, while EBIT fell 9% to €360 million—down 20% in the industrial segment—and CEO Karin Rådström said stronger North American performance and lower expected tariffs prompted an upward revision to the full-year forecast.
Despite the 48% profit drop, Daimler Truck's revenue rose 5% to €12.3 billion and sales increased 8% to 86,707 trucks and buses, prompting CEO Karin Rådström to raise the full-year forecast due to stronger North American demand and lower expected tariff burdens; the company also confirmed plans to cut 5,000 jobs in Germany under its 'Cost Down Europe' program and build a new U.S. factory to counter tariff challenges, while EBIT fell 9% to €360 million—20% in the industrial segment—and first-quarter profit plunged 80%.
Despite the 48% profit decline, Daimler Truck's revenue rose 5% to €12.3 billion and sales increased 8% to 86,707 trucks and buses, prompting CEO Karin Rådström to raise the full-year forecast due to stronger North American performance and lower expected tariff burdens; the company also confirmed plans to cut 5,000 jobs in Germany under its 'Cost Down Europe' program and build a new U.S. factory to mitigate tariff challenges, with EBIT in the industrial segment falling 20% while overall EBIT dropped 9% to €360 million.
