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(Bloomberg) — Daimler Truck Holding AG lowered its outlook for 2024, following other truckmakers who have trimmed forecasts due to softening sales as demand in Europe and Asia weakens.
The German manufacturer now expects group revenue of as much as €55 billion ($59.6 billion) this year, down from as much as €57 billion previously.
Earnings before interest and taxes is expected to be “significantly below” last year, with adjusted Ebit slightly lower, the company said Thursday. Second-quarter adjusted Ebit was €1.17 billion.
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“We cannot be satisfied with the Q2 result,” Chief Financial Officer Eva Scherer said. “We have to define and implement further structural measures to optimize our cost base to become more resilient.”
Truckmakers are adjusting forecasts due to lower demand levels after working down record order backlogs following the pandemic. Paccar Inc. recently trimmed its outlook for heavy truck sales in the US and Canada, while Volvo AB reduced its projection for the Chinese market, where a protracted real estate crisis is weighing on construction activity.
Daimler Truck flagged earlier in July that it could cut its forecast due to soft demand in China, with the company taking a €120 million impairment charge on the value of its joint venture in the country. In May, the company had noted increasing headwinds in Europe.
Chief Executive Officer Martin Daum said in March that the company expects a boost in sales from the transition to zero-emission vehicles from 2025 or 2026 onward, adding that the slow progress in expanding electric chargers in Europe and the US is threatening the shift.
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