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Daimler Truck Holding AG reported a decline in revenue and earnings in the second quarter of 2024 as business in Europe and Asia faced headwinds, the company said on August 1.

The German truck maker reported net income of $860 million, or $1.01 per share, for the three months ended June 30. In the same period last year, net income was $1.09 billion, or $1.21. Total revenue fell 4% to $14.50 billion, from $15.15 billion.

“Daimler Truck delivered solid figures overall at Group level in the second quarter,” said Martin Daum, CEO of Daimler Truck. “Without the negative one-off effect from the impairment in China, our adjusted return on sales for the industrial business would again have been double-digit.”

The company faced increasing headwinds in key regions during the quarter, particularly Europe and Asia, but there was strength in other areas such as buses, financial services and battery electric vehicle sales, which rose 69% to 648 vehicles compared to 383 a year ago.

Daimler Truck had previously announced the fully impaired at-equity carrying amount of its Chinese joint venture Beijing Foton Daimler Automotive Co. Due to the negative impact of the current market and economic situation in China, the joint venture had a one-time, non-cash negative effect of USD 130.8 million on the adjusted earnings before interest and taxes (EBIT) of its Asia business and its industrial business in the second quarter.

The company highlighted that its North America and Buses divisions delivered record results in the quarter. Daimler Truck North America’s revenue rose 1% to $6.56 billion from $6.51 billion a year earlier. Sales fell 5% to 48,230 from 50,618. Results were helped by improved net pricing and a favorable sales mix.

RELATED: Daimler Truck sales in North America fall by 4.7% in the second quarter compared to the previous year

“The Trucks North America and Daimler Buses segments have shown excellent performance with record margins,” said Daum. “However, demand in key truck markets, particularly in Asia and Europe, has weakened, which is creating stronger headwinds for us.”

Daimler Buses’ revenue increased by 29% from USD 1.07 billion to USD 1.38 billion. Sales increased by 8% from 6,181 to 6,648 units. Significantly higher sales figures, improved net prices and effects from the sales mix contributed to the overall positive results.

Mercedes-Benz revenues fell 17% from USD 6.05 billion to USD 4.99 billion. Sales fell 22% from 39,236 to 30,604. The market environment in the key European truck markets became more difficult, resulting in lower sales, an unfavorable sales mix and underutilization of production.

Trucks Asia’s revenue fell 16% to $1.54 billion from $1.84 billion. Unit volumes fell 29% to 28,342 from 40,097. The report noted a slowdown in market demand as headwinds increased.

Revenue in the Financial Services sector increased 31% from $689 million to $904 million. New business increased 19% from 2,507 to 2,985. The results were driven by higher risk costs in the Americas, mainly due to the ongoing recession in the freight sector.

On July 31, one day before the release of its earnings report, Daimler Truck announced that Kevin Bangston had been named the next President and CEO of Daimler Truck Financial Services North America, with an initial start date of September 1.

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