Daimler Truck: mixed results
(CercleFinance.com) - Daimler Truck announced on Tuesday evening that it had booked a provision in the second quarter for persistent weakness in its Asian business and was reviewing its annual targets, announcements that were greeted with little excitement on the stockmarket (cp -2.
3%).
According to preliminary data, its adjusted operating income before non-recurring items (Ebit) came to E1,168m in Q2 just ended, compared with a consensus of E1,259m.
Excluding the impairment charge booked on its Chinese joint venture BFDA (Beijing Foton Daimler Automotive), the group would nevertheless have exceeded market forecasts.
The main lesson to be learnt from this preliminary publication is, in our view, the glaring difference between the performance of Trucks North America and Mercedes-Benz, RBC analysts say.
The Canadian broker points out that the North American division posted adjusted operating income of E875m and a margin of 14.5%, both ahead of consensus.
By contrast, Mercedes-Benz's operating income of E299m and margin of just 6.5% came in below expectations, RBC says.
The Group's better-than-expected operating profit and impressive performance in North America more than offset the weaker-than-expected Mercedes-Benz results and the announcement of a non-cash provision, RBC explained.
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3%).
According to preliminary data, its adjusted operating income before non-recurring items (Ebit) came to E1,168m in Q2 just ended, compared with a consensus of E1,259m.
Excluding the impairment charge booked on its Chinese joint venture BFDA (Beijing Foton Daimler Automotive), the group would nevertheless have exceeded market forecasts.
The main lesson to be learnt from this preliminary publication is, in our view, the glaring difference between the performance of Trucks North America and Mercedes-Benz, RBC analysts say.
The Canadian broker points out that the North American division posted adjusted operating income of E875m and a margin of 14.5%, both ahead of consensus.
By contrast, Mercedes-Benz's operating income of E299m and margin of just 6.5% came in below expectations, RBC says.
The Group's better-than-expected operating profit and impressive performance in North America more than offset the weaker-than-expected Mercedes-Benz results and the announcement of a non-cash provision, RBC explained.
Copyright (c) 2024 CercleFinance.com. All rights reserved.