Daimler Truck said it benefited “from an overall economic recovery in the most important commercial vehicle sales markets” during full year 2021 and “significantly” increased unit sales, revenue and net profit.
Unit sales of trucks and buses rose 20% year on year to 455,400 units from 378,300 in Covid 19-ravaged 2020.
“The company gained advantage from a recovery in its most important markets, especially in the first half of 2021,” the truckmaker said in a statement. “While demand remained strong across core markets during the second half, supply constraints slowed production and limited volume growth especially for heavy duty vehicles in North America and Europe.”
Revenue rose 10% to EUR39.8 billion in 2021. Daimler Truck said incoming orders for 2021 rose 37% to 590,000 units and there was also “favourable development for earnings and return on sales driven by strong sales, an improved net pricing and cost reduction measures”.
Adjusted EBIT (earnings before interests and taxes) rose significantly to EUR2,552 million from EUR657 million while a RoS was 6.1% versus 1.9% in 2020.
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“Daimler Truck delivered on the targets for cost reduction and margin improvement [but] simultaneously faced headwinds by the effect that supply chain constraints predominantly affected the group’s highly profitable truck portfolio in North America and Europe,” the company said.
Group 2022 outlook
Daimler Truck said it “currently assumes that the economic conditions in our most important markets continue to normalise and that neither the Covid-19 pandemic nor Ukraine war will have a negative impact on the general market development”.
“Despite a strong demand, bottlenecks in the semiconductor industry and ongoing supply constraints will continue to impact sales mainly in the first half.”
The company’s guidance estimates the North American market to be between 255,000 and 295,000 units and the European market to be between 240,000 and 280,000 and it expects an increase in total unit sales to between 500,000 and 520,000 units this year.
It also expects group revenue to rise to between EUR45.5 and EUR47.5 billion along with a “significant increase” in EBIT adjusted.
RoS adjusted is pegged at 7% to 9%.
“In these dramatic weeks, our thoughts are with the people in Ukraine and we hope that this war will end soon. Shortly after the war began, we decided to completely suspend our business in Russia until further notice. At the same time, we are supporting charitable organisations in their Ukraine aid efforts as well as numerous private initiatives by our employees, for which I would like to express my gratitude,” said Daimler Truck management board chairman Martin Daum in the statement.
Daimler Truck assumes supply chains will not be affected significantly by the war. One-time expenses resulting from the discontinuation of the Russia will be booked separate from first quarter operating results.
“The currently foreseeable operational effects, such as the halted Russia business as well as the currently incurred higher raw material and energy costs, are included in the guidance for 2022.”