Daimler Truck's operating profit halves as weak demand and tariffs hit North American market

Source: Global Market Report

One of the world's largest truck manufacturers, Daimler Truck, stated on Wednesday that its first-quarter operating profit was reduced by more than half due to historically weak demand and tariffs on imports in its key North American market. The company's adjusted operating profit was 498 million euros (about $583.56 million), compared to 1.08 billion euros in the same period last year.

Daimler Truck’s performance reflects a sharp slowdown in the North American market, where sales dropped by a quarter to 29,432 vehicles, while import tariffs imposed under the Trump administration dealt a significant blow to the automotive industry. The group’s CFO, Eva Scherer, said in a statement: “The North American truck business continues to face headwinds from tariffs, and the impact of tariffs was fully reflected for the first time in the first quarter.” The adjusted sales profit margin in North America fell to 5.4% from last year's 14.4%. Daimler Truck still confirmed its full-year outlook and noted that the number of new orders in the North American truck business increased by 86% compared to the previous year.