Daimler Truck delivers upbeat 2023 guidance despite inflationary pressures

By Scott Kanowsky

Investing.com -- Daimler Truck Holding AG (ETR:DTGGe) unveiled better-than-expected revenue guidance for the current year despite flagging challenges from elevated energy costs and supply chain constraints that hit its operations in the fourth quarter.

The group, which was spun off from German carmaker Daimler in December 2021, said that it now sees revenue in 2023 rising to between €55 billion to €57 billion. Bloomberg consensus estimates had placed the figure at €51.82B. Adjusted earnings before interest and taxes are also anticipated to increase significantly, it added.

Daimler Truck noted that economic conditions remain "difficult," with high inflation and lingering supply chain bottlenecks threatening to weigh on performance. As a result, the company estimates that unit sales will be in a range of between 510,000 to 530,000, near the 2022 mark of 520,291.

"We are on a journey to benchmark profitability, but there is still a way to go, especially on costs given the inflationary pressures. Our outlook shows that we will continue our self-help measures to improve our financials," said chief financial officer Jochen Goetz in a statement.

In the final three months of last year, Daimler Truck posted adjusted core income of €1.03B - a 73% jump on an annual basis that stemmed from robust vehicle demand. However, the number was still short of analysts' forecasts of €1.15B.

Analysts at Oddo called the quarterly returns "soft," but said the miss was largely anticipated and due to exceptional cost items. The 2023 outlook, they added, was "clearly positive" and reassured investors that Daimler Truck can overcome the impact of increased input expenses.

Shares in Daimler Truck were in the red in early trading on Friday, although they have risen by more than 31% over the past one-year period.