By Louis van Boxel-Woolf and Isabel Demetz
(Reuters) -Daimler Truck shares fell as a lot as 6.5% on Friday because the German truck and busmaker highlighted weak point in its European market after reporting first-quarter outcomes that beat forecasts.
Order consumption fell 15% at Daimler Truck’s Mercedes-Benz (OTC:) enterprise, which focuses on Europe, whereas in its North American truck enterprise orders rose 30% within the quarter.
The shares had been down 5.4% by 0848 GMT.
Daimler Truck upset with its order consumption for Europe, Warburg Analysis analyst Fabio Hoelscher mentioned.
“Management appears to have become slightly more cautious than before, based on lower than expected order intake in Q1”, he mentioned.
“Guidance remains intact but it sounded like we are heading more towards the lower than the higher end”, he added.
Truckmakers are aiming to spice up margins as demand slows following the discharge of pent-up pandemic demand final yr.
Value rises helped Volkswagen (ETR:)’s truck-making enterprise Traton beat expectations within the first quarter, with worth hikes at Volvo (OTC:) additionally partially offsetting an nearly 20% fall so as consumption.
“Depressive sentiment” in Germany was holding again Daimler Truck in Europe, CEO Martin Daum mentioned on an earnings name.
He mentioned that this had an outsized influence on Daimler Truck since its market share within the nation was twice as excessive as for the remainder of continental Europe.
Oliver Wojahn of mwb analysis mentioned Daum’s feedback had been inflicting “increasing doubts that a recovery of European markets, especially the most important German market” would come.
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“Investors might prefer to watch from the sidelines to see how this unfolds,” he mentioned.
Daimler Truck reported core revenue of 1.21 billion euros ($1.30 billion) for the quarter, beating the consensus estimate of 1.17 billion euros in an organization ballot.
Core revenue at Daimler Truck’s Mercedes-Benz enterprise, which focuses on Europe, fell 4% in contrast with the identical interval final yr. For its Vehicles Asia enterprise core revenue fell 39%.
The North America enterprise reported a 7% rise in core revenue within the quarter.
The maker of yellow Thomas Constructed college buses reiterated its steering for the yr.
($1 = 0.9317 euros)
(Further Reporting by Ilona Wissenbach, Modifying by Miranda Murray and Jane Merriman)
