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Daimler Truck sees higher returns as supply chains, demand improve
Global Banking & Finance Review®
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BERLIN (Reuters) – Daimler Truck reported on Tuesday an adjusted return of sales of 8.8% in the first quarter of the year, up from 5.9% last year and towards the top end of its annual outlook for 2023, on a rise in revenue of 25%.
The truck and busmaker confirmed preliminary results released late April of a 78% jump in operating profit to 1.162 billion euros ($1.28 billion).
Its Asia business, which struggled in 2022, yielding just a 2.6% margin, saw some improvement in the first quarter, reaching a margin of 4.6%.
Its North America and Europe divisions saw returns of 11.6% and 8.8% respectively, in line with long-term targets.
Broadly, global supply chains were stabilising and demand was up compared to this time last year, the statement said, as illustrated by the 15% jump in unit sales to just over 125,000 units.
The company kept its outlook from earlier this year unchanged, forecasting 55-57 billion euros in revenue for the year and 7.5-9% adjusted returns.
($1 = 0.9084 euros)
(Reporting by Victoria Waldersee, Editing by Rachel More)
Adjusted return of sales is a financial metric that measures a company's profitability by comparing its sales revenue to its expenses, excluding certain non-recurring items. It helps assess the company's operational efficiency.
Operating profit refers to the earnings a company generates from its core business operations, excluding any income derived from non-operational activities such as investments or sales of assets.
Global supply chains refer to the network of production and distribution processes that span multiple countries, enabling companies to source materials and deliver products to consumers worldwide.
Profit margin is a financial metric that indicates the percentage of revenue that exceeds the costs of goods sold. It reflects a company's profitability and efficiency in managing its expenses.
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