Daimler Truck reported a strong performance in the bus segment despite a complex market situation in the first half of the year. During that period, 12,252 buses were sold (+4% on half 2023) and revenue at Daimler Buses increased 27% (from 1.9 billion to 2.4). Adjusted EBIT rose from 42 to 174 billion, with a 313% leap. 3,276 buses were sold in Europe.
In the same period, Daimler Truck revenue saw a slight dip to €26.58 billion compared to €27 billion in the same period last year. The adjusted Group EBIT for H2024 was €2,38 billion, down from €2.6 billion in the January – June period 2023, impacted significantly by a non-cash impairment in the China business. Also incoming orders are decreasing: -10% (198K vs 219K).
What is also interesting, a bus covered by curtain is showed in the Q2 Roadshow presentation available online. It’ll be launched in 2025. Will it be a electric intercity bus, the first in the Daimler Buses’ range?
Sales of battery-electric vehicles grew by 69% to 648 vehicles (Q2 2023: 383).
Daimler Truck financial results half 2024 released
The group just released its financial results for the first half of 2024. In line with the contraction of the truck markets, the group’s global sales in Q2 totaled 112,195 units (Q2 2023: 131,888).
In the Daimler Buses segment, “significantly higher unit sales versus the previous year’s level, improved net pricing and effects from the sales mix contributed to the overall positive results”, the group states.
The press note issued by Daimler Truck detailed the impact of the non-cash impairment of €120 million related to the China Joint Venture BFDA (Beijing Foton Daimler Automotive Co., Ltd.). This one-time event adversely affected the adjusted EBIT of the Industrial Business (IB) segment and Trucks Asia, reducing the Q2 IB adjusted return on sales (adj. ROS) from 10.2% to 9.3%.
Daimler Truck guidance for 2024
Looking ahead, Daimler Truck has updated its full-year guidance for 2024. The Group now expects unit sales between 460,000 and 480,000 and revenue of €53 to €55 billion. The EBIT is projected to be significantly below the prior year’s level, with adjusted EBIT slightly lower than the previous year.
Daimler Buses is anticipated to achieve an adjusted ROS of 6.5% to 8.5%.
Martin Daum, CEO of Daimler Truck: “Daimler Truck has delivered overall solid results on Group level in the second quarter. Leaving aside the negative one-time effect of the impairment in China, our adjusted Return on Sales for the Industrial Business would have been again double-digit. The segments Trucks North America and Daimler Buses have shown an excellent performance with record margins. However, demand in key truck markets particularly in Asia and Europe has weakened, giving us stronger headwinds. This is also reflected in our updated full-year guidance with an expected adjusted Return on Sales in the range of 8 to 9.5% for the Industrial Business. This does not satisfy us. We as a team will work very focused and diligently to turn 2024 into another good year for Daimler Truck.”
Eva Scherer, CFO of Daimler Truck, added, “In North America we see a strong performance historically and versus our peers. This once more demonstrates our strength in this market. At Mercedes-Benz, a lot of efforts have been taken to improve our cost structure. However, we cannot be satisfied with the Q2 result. It is clear that we have to define and implement further structural measures to optimize our cost base to become more resilient. Cash generation will continue to be a high focus in the second half of the year. We will ensure that our shareholders continue to benefit from the solid results on Group level with an attractive dividend and the ongoing share buyback program.”