Daimler Truck to keep prices high, sees strong 2023

BERLIN, Aug 11 (Reuters) – Daimler Truck (DTGGe.DE) will hold costs excessive even when sure prices start to fall with a purpose to compensate for decrease margins since final 12 months, the truckmaker stated on Thursday, forecasting demand will stay robust into 2023 regardless of fears of recession.

Vitality costs, bottlenecks in China and chip shortages will proceed to weigh within the second half of this 12 months, chief govt Martin Daum stated, despite the fact that the corporate expects some provide chain points to ease.

“Even when some prices are easing, we’ve got to catch up for the fourth quarter of 2021 … we will certainly hold our pricing to return to regular margins,” Daum stated on a name with analysts.

“We anticipate a robust 2023 – demand will outpace the provision aspect,” he added on a media name, saying the truckmaker was not seeing any impression on demand from rising inflation globally.

The truck and bus maker has stated a number of occasions this 12 months it’s assured robust demand will permit it to maintain passing on rising prices of power and uncooked supplies to prospects.

Nonetheless, chief monetary govt Jochen Goetz stated in Might value will increase have been out of “necessity” and can be reversed if uncooked materials costs returned to pre-pandemic ranges. learn extra

Daimler Truck reported a 15% rise in earnings earlier than curiosity and taxes to 1.01 billion euros ($1.04 billion) within the second quarter, far exceeding analysts’ expectations, however adjusted returns have been barely decrease than final 12 months at 8% from 8.1%.

First quarter margins have been additionally down from final 12 months, regardless of larger revenues and earnings. learn extra

Vans are offered out in Europe and North America for 2022 and the corporate is reallocating scarce chips from international locations together with Japan and India to serve orders in larger margin markets, it stated.

Goetz was optimistic the potential for additional cuts to gasoline provides to Germany from Russia wouldn’t carry factories to a halt, including he was extra involved whether or not suppliers would nonetheless be capable to ship.

Opponents Traton (8TRA.DE) and Iveco (IVG.MI) reported falling second quarter earnings regardless of rising revenues, resulting from provide chain points. learn extra

($1 = 0.9720 euros)

Reporting by Victoria Waldersee, Enhancing by Simon Cameron-Moore and Mark Potter

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