Daimler Truck Q3 profit rises 73% as North America truck demand recovers

what happened

Daimler Truck, one of the world's biggest truckmakers, reported on Friday a 73% increase in third-quarter adjusted operating profit, according to Reuters. The figure came to 1.12 billion euros ($1.25 billion), up from 648 million euros a year earlier and above the 1.10 billion euro forecast in a company-compiled consensus. The company also confirmed its full-year outlook.

The largest division, Trucks North America, drove most of the result. Its adjusted operating margin climbed to 12.1% from 6.4%, while operating profit jumped 169% to 691 million euros. Unit sales in North America rose 51% year on year to 45,629. The CEO, Karin Radstrom, said the quarter showed the business continuing to build momentum.

why it matters

The rebound suggests the US heavy-duty truck market is recovering from a prolonged downturn, when fleets delayed purchases and manufacturers cut output. Rival Traton also reported strong growth in North American orders. For investors in industrials and logistics, the key question is whether this recovery holds in the coming quarters.

market impact

Daimler Truck and US truck market: results above forecasts support the stock and the sector.

• ▲Daimler Truck shares pressure up — profit beat consensus and the full-year outlook was confirmed
• ▲Traton shares pressure up — strong North American order growth at a rival signals a market recovery

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