Daimler Trucks with solid 2019 result – 2020 focus on efficiency gains and measures for CO2 neutrality

Earnings of 2.5 billion euros –third-best Daimler Trucks result

Daimler Trucks ended the financial year 2019 with a solid result in a challenging environment. With an operating profit (earnings before interest and taxes, EBIT) amounting to 2.5 billion euros, 2019 was the third most successful financial year in the history of the business division, despite a decline (minus 11% compared with 2018). Revenue equated to 40.2 billion euros and was thus above the level of the previous year (by comparison: 38.3). The return on sales for 2019 was 6.1 percent (minus 1.1 percent compared with 2018).

From the third quarter of 2019 the company felt the beginning of an economic normalization in key markets and reacted immediately. By way of example, the demand that had been high at the beginning of the year in particular in North America, Europe and Japan in particular was down at the end of 2019. Overall, following the record year of 2018, Daimler Trucks’ sales were down 6 percent to 488,500 (compared with 517,300) units in 2019. Daimler Trucks therefore adjusted its global production accordingly in the third quarter of 2019. In view of the cyclical commercial vehicle business, sales development is to be regarded as normal and common for the sector.

For 2020 Daimler Trucks is anticipating further normalization of the demand which has been particularly high in recent years. In the key truck sales markets the company is expecting rather unfavorable general economic conditions. In the North America region the company assumes that the market for heavy-duty trucks (Class 8) will significantly decrease. The basis for comparison is the very high level in 2019. In an ongoing weak overall economic environment in the EU30 region (EU, United Kingdom, Switzerland and Norway), demand for heavy-duty trucks is expected to decline significantly compared with the robust level of the previous year. In Brazil, sales of heavy-duty trucks are likely to remain at only about the same level as last year following the lively recovery of previous years. In Japan, we anticipate a significant decline in demand for heavy-duty trucks.

Martin Daum, Chairman of the Board of Daimler Truck AG: “2019 was a solid year for Daimler Trucks. We achieved a good result of 2.5 billion euros. We responded to the economic headwind in key regions and adjusted our production. We want to and will permanently cut our costs. This is why we have intensified our efficiency measures. We will continue to lead the transformation in our trade. The earnings power for extensive investments in future technologies is the key to success. This is how we can achieve a sustainable transformation to emission-free, automated and connected transportation of the future.”

Please click here to view the full press release.

SOURCE: Daimler