Daimler Truck Unit Must Increase Gains to Reach 2013 Target image

Daimler Trucks has to increase delivery gains and spending cuts to be able to reach the earnings goal for 2013 and fulfill the sales and savings strategy through 2014.

“We have a lot of catching up to do by the end of the year, ” Wolfgang Bernhard, head of the Daimler Trucks division, said at a press briefing yesterday in Woerth, Germany.

Daimler Trucks manufactures Mercedes-Benz, BharatBenz, Freightliner, Fuso and Western Star commercial vehicles, and the target for this year is to match last year’s EBIT. Bernhard became the head of the Daimler Trucks in April and said that the company still has a lot of work to do to reach the 1.6 billion euro increase in the earnings before interest and taxes by the end of 2014.

“It’ll be an ambitious goal” to equal last year’s earnings in 2013, said Frank Biller, a Stuttgart, Germany-based analyst with LBBW. “We expect them to post a slight decline. What the company can influence always also depends on how many trucks they can sell. And the markets remain difficult.”

According to ACEA, new heavy truck sales for the first five months of the year dropped 12% in Europe to 85,220 units, while Daimler Truck’s global sales during this period fell 3% to 180,119 units, with Europe down 6.5%, and North America down 2.5%.

Source: Bloomberg