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Incoming orders at the German truck and bus maker were down 18% on year in the three months ended Sept. 30, and down 14% this year so far, the company said in a statement, a sign that the backlog of demand outstripping supply as chip shortages prevented automotive manufacturers from delivering goods is clearing up.
Higher pricing, favourable exchange rate effects and a strong after-sale business pushed revenues up 47% and adjusted earnings before interest and taxes up 159%, the company said, confirming results released in an ad-hoc statement in late October.
The company, which was spun off from Mercedes-Benz last year, raised its outlook in October for full-year revenues to 50-52 billion euros ($104.26 billion)from 48-50 billion and said it expected earnings 5-15% above last year’s rather than at prior level as previously forecast.
This assumed that global demand would remain high for the remainder of 2022, the statement cautioned, adding it did not expect major production downtimes due to the unavailability of gas in Europe or missing parts.
The jump in earnings was highest in Europe at 316% from the same quarter last year compared to 111% in North America, traditionally Daimler Truck’s strongest market.
In Asia, however, where a depressed Chinese market prompted the company to lower its regional adjusted earnings margin last quarter to 1-3% from 3-5%, earnings fell 63% even as revenues and unit sales increased.
Sales of Daimler Buses, which did not grow at all in 2021, were up 18% this year so far, with earnings more than tripling to 23 million euros ($23.51 million).
($1 = 0.9785 euros)
