- 109,000 units sold, significantly higher than last year (Q1 2021: 101,000 units)
- Orders remain at a high level, record order book
- Despite supply chain constraints: significant increase in turnover
- Group adjusted EBIT climbs to 651 million euros (Q1 2021: 588 million euros)
- Return on Sales (ROS) of 5.9% (Q1 2021: 6.3%)
- The company confirms its outlook for 2022
Daimler Truck Holding AG (“Daimler Truck”) started the new year positively with growth in unit sales, revenue and EBIT (adjusted). The company was able to significantly increase group unit sales compared to the previous year to reach 109,000 units in the first quarter of 2022 (+ 8%, first quarter of 2021: 101,000 units). Despite persistent supply bottlenecks, Daimler Truck was able to benefit from strong demand in the first quarter. Supported by strong unit sales for Trucks North America and Mercedes-Benz, improved net pricing and positive contributions from the aftermarket and used vehicle businesses, group sales increased by 17% to reach €10.6 billion (Q1 2021: €9.0 billion). Daimler Truck sees that demand remains strong. The backlog of approximately 139,000 units marks a high level of order intake during the first quarter of the reference year. The order book continues to increase to reach a new record level.
Adjusted EBIT (earnings before interest and tax) increased by 11% to €651 million in the reporting period (Q1 2021: €588 million). In the industrial sector, the adjusted EBIT of 604 million euros was around 9% higher than in the same period of the previous year (552 million euros). The adjusted return on sales (adjusted ROS) amounts to 5.9% (Q1 2021: 6.3%).
Following the outbreak of Russia’s war against Ukraine, Daimler Truck decided on February 27, 2022 to suspend all business activities in Russia until further notice. For the first quarter, the resulting impairment had a one-off negative effect of 170 million euros. The rest of the total expected effect, approximately 200 million euros, will be amortized later. Given the strong demand in other regions, the volume lost in the affected markets was immediately reallocated and absorbed by other markets.
Jochen Goetz, Financial Director of Daimler Truck: “Our positive first quarter results prove that we are able to stay the course, even in a more uncertain environment. We remain fully committed to the ambitions we have set for 2025 and are confident in our aim to achieve our 2022 targets. Semiconductor allocation optimization and net price adjustment have proven to be effective actions to counter chip shortages and commodity price headwinds. Given today’s supply chain challenges and the potential impact of the war in Ukraine on the global economy, our practice of tight management of fixed costs and preservation of cash is more important than ever to ensure sustainable profitability. We are not faltering on this point, not the least in the world”.
Market vision for 2022 and outlook
Daimler Truck’s outlook assumption assumes that global macroeconomic conditions will continue to be comparatively favorable for global commercial vehicle demand in 2022. For its industrial business, Daimler Truck continues to expect unit sales to increase in a range between 500,000 and 520,000 units for 2022. The company also continues to expect a significant increase in sales at group level in 2022. In particular, due to improved prices and exchange rates, Daimler Truck updates the revenue forecast in terms of the range between 48.0 and 50.0 billion euros (previous forecast: 45.5 and 47.5 billion euros). The EBIT forecast for the group is also changed, from a “slight decrease” to “a level equivalent to that of the previous year”. Regarding the ROS adjusted for the industrial activity of Daimler Truck, it will remain unchanged between 7 and 9%.
Daimler Truck’s outlook covers all currently known impacts of the Russia/Ukraine war and semiconductor shortages. However, these prospects depend on the evolution of the war and its impact on the world economy. Additional uncertainties remain possible due to the effects of the COVID-19 pandemic and related lockdowns.
Additional information and documents (1st Quarter Interim Report, Capital Market Presentation, Fact Book, etc.), including detailed information on Daimler Truck’s five reporting segments, are available online in the Relationships with Daimler Truck investors:
https://www.daimlertruck.com/investoren/q1-2022-press.html
Daimler Truck has been part of the German stock market index, the DAX, since March 21, 2022. Daimler Truck shares are traded on the regulated market (Prime Standard) of the Frankfurt Stock Exchange under the symbol DTG. The International Securities Identification Number (ISIN) is DE000DTR0CK8, the German Securities Identification Number (WKN) DTR0CK.
Daimler Truck press release.
