Daimler Truck benefited from an overall economic recovery in the most important commercial vehicle sales markets in the financial year 2021 and significantly increased its unit sales, revenue and net profit.
With 455,400 units, 20 percent more trucks and buses have been sold worldwide in 2021 compared to prior-year level (378,300 units). The company gained advantage from a recovery in its most important markets, especially in the first half of 2021. 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.
Supported by the overall significant growth in unit sales volume, the company’s revenue increased to € 39,8 billion in 2021 (+ 10 percent compared to previous year: € 36,0 billion). Supported by a very strong demand environment and driven by all segments Daimler Truck’s incoming orders for 2021 in the industrial business have mounted to 590,000 units, a plus of 37 percent compared to prior year (430,500 units). Even more important, 2021 also showed a favorable development for earnings and Return on Sales (RoS) driven by strong sales, an improved net pricing and cost reduction measures.
The adjusted EBIT (earnings before interests and taxes) significantly rose to € 2,552 million (previous year: € 657 million). The adjusted RoS of the Industrial Business in 2021 was at 6.1 percent versus previous year’s RoS adjusted of 1.9 percent. The Free Cash flow of the Industrial Business amounted to € 1,556 million in the reporting year (2020: € 1,781 million). All in all, Daimler Truck delivered on the targets for cost reduction and margin
improvement. Simultaneously Daimler Truck faced headwinds by the effect that the supply chain constrains predominantly affected the Group’s highly profitable truck portfolio in North America and Europe.
Group outlook for 2022
Daimler Truck currently assumes that the economic conditions in our most important markets continue to normalize and that neither the Covid-19 pandemic nor the war in Ukraine 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. Reflecting the two major regions North America and Europe, 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 units. For its industrial business Daimler Truck anticipates an increase in unit sales to a range between 500,000 and 520,000 units in 2022. The company expects a significant increase in its revenue on group level in 2022 to a range between € 45.5 and € 47.5 billion. Regarding its EBIT adjusted Daimler Truck is also expecting a significant increase. Regarding the Return on Sales (RoS) adjusted for the Industrial Business Daimler Truck is expecting to come out between 7 and 9 percent.
"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 Martin Daum, chairman of the board of management of Daimler Truck.
Daimler Truck assumes that the supply chains for Daimler Truck will not be affected significantly by the war. The one-time expenses resulting from the discontinuation of the business in Russia will be considered outside the operating result in the first quarter. 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.
Source: Daimler Truck
