By Adria Calatayud
Daimler Truck Holding shares fell after the German truck and bus maker cut its full-year outlook, citing weakness in the North American heavy-duty market amid continued uncertainty.
Shares in Daimler were down 5% in European morning trade, but remained up 11% since the start of the year.
The company blamed market weakness in North America for a reduction in its full-year outlook, the second in as many quarters, and cautioned that its guidance could be revised again in case the tariff landscape or economic conditions change.
Daimler projected a full-year adjusted operating profit of between 3.6 billion and 4.1 billion euros ($4.11 billion-$4.68 billion). This compared with prior expectations of a result ranging from a 5% fall to a 5% rise relative to last year's 4.67 billion euros.
The company said it expected the North American heavy-duty market to be weaker than previously anticipated, which would hurt sales volumes and profitability at its Trucks North America segment. As a result, Daimler also lowered its forecasts for unit sales, revenue and profitability for its industrial business.
Daimler Truck said its updated guidance assumed the company would continue to operate under the framework of the current U.S.-Mexico-Canada trade agreement.
This caveat suggests there might still be risk for the company's guidance in light of an investigation launched in the U.S., which would hurt Daimler, analysts at Bernstein wrote in a note to clients. Moreover, the extent of the guidance cut points to weakening pricing and could disappoint some investors, even if a reduction was widely anticipated, the analysts said.
For the second quarter, Daimler reported a net profit of 277 million euros, down from 742 million euros in the year-earlier period. Revenue declined to 11.67 billion euros from 12.425 billion euros.
Adjusted operating profit fell 4.3% to 1.12 billion euros. This exceeded analysts' estimates of 1.065 billion euros, according to a consensus provided by the company.
Write to Adria Calatayud at adria.calatayud@wsj.com
(END) Dow Jones Newswires
08-01-25 0434ET
