Second-quarter order intake at Daimler Truck fell 5% on the prior year, the firm said on Thursday, amid weakening demand in Europe and Asia.
Total orders, an indicator of future sales, stood at 198,376 for the first half, a fall of 10% from last year.Orders for the quarter were 92,569 units, reports Reuters.
“Demand in key truck markets, particularly in Asia and Europe, has weakened”, said CEO Martin Daum.
Truckmakers are grappling with subdued demand in Europe. Traton, the truck and bus maker majority-owned by Volkswagen reported a decline in order intake in the continent even as it rose in the Americas during its first half.
Daimler Truck cut its guidance after market close on Wednesday, with the firm now expecting 2024 earnings before interest and taxes “significantly below” those of 2023.
The company also said that price hikes helped its Trucks North America business to achieve a margin of 14.5% in the second quarter, up from 13.1% in the prior year, even as unit sales fell at the division.
The segment made up about half of the company’s earnings last year.
Lower volumes at its Europe-focused Mercedes-Benz business, however, dragged its margins down to 6.5% in the second quarter from 9.8% last year.
