Daimler Truck hits double-digit return on sales in industrial business

BERLIN, Aug 1 (Reuters) – Daimler Truck (DTGGe.DE) achieved a record adjusted return on sales in its second quarter of 10.3% for its industrial business making trucks and buses, the company said on Tuesday, boosted by considerable growth in its North America and Asia business.

Unit sales rose by 9% with revenue up 15%, indicating the company had upheld its strategy of combatting rising costs by hiking prices – but incoming orders were down by 12% in the first half of the year, results showed.

Earnings per share in the quarter fell slightly to 1.11 euros compared to 1.12 euros in the prior year period, the company said.

Daimler Truck raised its guidance for annual adjusted sales returns across the group last month to a range of 8.5% to 10% from 7.5% to 9% previously, citing easing of supply chain constraints, stronger demand in its core markets and the after-sales business.

The company struggled in the first quarter with supply chain issues for semiconductors, but has maintained throughout the year that a general improvement in supply chains would lift its profits.

($1 = 0.9101 euros)

Reporting by Ilona Wissenbach, Victoria Waldersee, Writing by Friederike Heine; Editing by Kim Coghill and Friederike Heine

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