-2.1 C
New York City
Tuesday, December 6, 2022
Home Around-the-World Daimler Truck to Keep Prices High, Sees Strong 2023

Daimler Truck to Keep Prices High, Sees Strong 2023

Daimler Truck will keep prices high even if certain costs begin to fall in order to compensate for lower margins since last year, the truckmaker said on Thursday, forecasting demand will remain strong into 2023 despite fears of recession.

Energy prices, bottlenecks in China and chip shortages will continue to weigh in the second half of this year, chief executive Martin Daum said, even though the company expects some supply chain issues to ease.

“Even if some costs are easing, we have to catch up for the fourth quarter of 2021 … we will definitely keep our pricing to go back to normal margins,” Daum said on a call with analysts.

“We expect a strong 2023 – demand will outpace the supply side,” he added on a media call, saying the truckmaker was not seeing any impact on demand from rising inflation globally.

The truck and bus maker has said several times this year it is confident strong demand will allow it to keep passing on rising costs of energy and raw materials to customers.

Still, chief financial executive Jochen Goetz said in May price increases were out of “necessity” and would be reversed if raw material prices returned to pre-pandemic levels.

Daimler Truck reported a 15% rise in earnings before interest and taxes to 1.01 billion euros ($1.04 billion) in the second quarter, far exceeding analysts’ expectations, but adjusted returns were slightly lower than last year at 8% from 8.1%.

First quarter margins were also down from last year, despite higher revenues and earnings.

Trucks are sold out in Europe and North America for 2022 and the company is reallocating scarce chips from countries including Japan and India to serve orders in higher margin markets, it said.

Goetz was optimistic the possibility of further cuts to gas supplies to Germany from Russia would not bring factories to a halt, adding he was more concerned whether suppliers would still be able to deliver.

©Copyright MOTORING WORLD INTERNATIONAL. All rights reserved. Materials, photographs, illustrations and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior written permission from Motoring World International

Contactinfo@motoringworldng.com

Most Popular

Volkswagen CEO to Present Software ‘Reality Check’ To Board

Volkswagen's (VOWG_p.DE) CEO will outline a new software and vehicle platform strategy to the carmaker's supervisory board on Dec. 15 as he tries to...

Toyota Set for 2023 Dakar Rally With Three-Car Team

TOYOTA GAZOO Racing is set to take on the 2023 Dakar Rally with a three-car team early in January. The defending champions, Nasser Al-Attiyah and...

New Fully Electric Volvo C40 Recharge Heads for South Africa

The new fully electric C40 Recharge is scheduled to join Southern Africa’s range of electrified vehicles in the first half of 2023. Offering many of...

Hyundai IONIQ 5 Wins Car of the Year Award

The 2022 Hyundai IONIQ 5 has earned Esquire’s Car of the Year this month, adding another coveted award to its growing trophy case. Every year, Esquire editors drive and...
%d bloggers like this: