Daimler Truck US tariffs

By Robin Wille

Berlin (dpa) — Profit at Germany’s Daimler Truck fell 80% in the first quarter, the commercial vehicle manufacturer said on Wednesday, as weaker performance in North America weighed on results.

Net profit dropped to €149 million ($175 million) from €749 million a year earlier.

Revenue declined 13% to €9.98 billion, while operating profit (EBIT) fell 71% to €292 million from about €1 billion in the same period last year.

The DAX-listed company said financial results were primarily affected by lower profitability in its North American business.

The company, however, pointed to a positive dynamic in incoming orders, with order intake rising by 50% in the first quarter compared with the same period a year earlier. In the United States, orders recovered even more strongly.

Daimler truck US tariffs

“We are well positioned for continued improvement over the course of the year, even against the backdrop of a challenging first quarter,” said Daimler Truck chief executive Karin Rådström.

“Global order intake increased by 50% year over year, fuelled by a strong recovery in the US, and this momentum will benefit our performance in the quarters ahead.”

Weakness in the US market and lower bus sales recently contributed to another decline in deliveries at Daimler Truck. In the first quarter of this year, the company sold 68,849 trucks and buses worldwide, a decline of 9% year-on-year.

Profit at the under-pressure commercial vehicle maker fell 34% last year to €2 billion. US tariffs and weak demand in North America weighed heavily on the business. Revenue and vehicle sales also declined.

To become more competitive, the company launched a cost-cutting programme last year, aiming to reduce ongoing costs in Europe by more than €1 billion by 2030. In Germany, around 5,000 jobs are expected to be cut, with the Mercedes-Benz truck brand particularly affected. Cost reductions are also planned in North America.