Daimler Trucks records 5% growth in 2013, cautiously optimistic about 2014

Daimler Trucks has posted 5 percent sales growth in CY 2013, selling 484,200 vehicles (2012: 462,000), the highest sales figure recorded since 2006. Stable revenues of €31.5 billion/Rs 267,592 crore (2012: €31.4 billion) led to a slight increase in earnings from ongoing business, to €1.75 billion (Rs 14,866 crore) last year (2012: €1.7 billion). Return on sales rose to 5.6 percent (5.4%). Daimler Trucks has also announced it will record significant growth in sales and EBIT for full-year 2014.

“We accomplished what we set out to do in 2013, despite operating in a challenging environment,” said Dr. Wolfgang Bernhard, Member of the Daimler Board of Management with responsibility for Trucks and Buses, on the occasion of the presentation of the annual results for Daimler Trucks.

Bernhard is cautiously optimistic about 2014. “We began the new year as we expected to,” Bernhard said. “Our products have won over customers by offering them the lowest total cost of ownership in the sector. I’m therefore optimistic that we will remain on course for success in 2014 and move a good step closer toward achieving our medium-term targets."

The company says truck sales increased in nearly all relevant markets in 2013. In Western Europe, sales rose by 14 percent to 65,900 units (2012: 58,000), largely due to early availability of all Mercedes-Benz Trucks models in Euro 6. Sales were also boosted by earlier-than-planned purchases of Euro 5 trucks in the last months leading up to the introduction of the more stringent Euro 6 emission standard on January 1, 2014.

In North America, it saw stable sales of 135,200 units (2012: 135,000) in the NAFTA region. Daimler Trucks also made substantial gains in its main Latin American market, Brazil, where sales rose by one-third to 38,800 units.

In Asia, Daimler Trucks has combined its Mitsubishi Fuso Truck and Bus Corp (MFTBC) and Daimler India Commercial Vehicles (DICV) subsidiaries into the Trucks Asia organization. It is using its Asia Business Model to exploit synergies along the entire value chain and enter new growth markets in Asia and Africa. The division has been mass producing BharatBenz brand trucks in Chennai since mid-2012. In the second quarter of 2013, the Chennai plant also began manufacturing FUSO brand vehicles for selected export markets in Southeast Asia and Africa.

In India, a sluggish economy held back demand for trucks. DICV sold a total of 6,500 BharatBenz trucks in 2013; the company says says the product range is to be significantly expanded in 2014.

Meanwhile, sales in FUSO’s home market in Japan increased by 10 percent in 2013 to 38,300 units.

Moderate growth ahead

Going forward, Daimler Trucks is cautiously optimistic about growth in 2014 and will continue to bank on its strategy is based on technology leadership, a global market presence, and smart platforms

General economic conditions will have a slightly positive effect on global truck markets in 2014. As things stand now, the global market for medium-duty and heavy-duty trucks is expected to undergo moderate expansion, although developments will once again vary greatly among individual markets. Substantial growth of as much as 10 percent is expected in the NAFTA region. Developments in Europe will largely depend on the extent to which economic recovery can offset the pre-buy effect due to the change to Euro 6. Daimler Trucks currently expects full-year market volume in Europe to be slightly below the level of 2013. Additional economic stimulus packages and an expansive monetary policy in Japan should lead to slight growth on the Japanese truck market in 2014. Volume on the Brazilian market will likely dip just below the prior year’s level.

Daimler Trucks says it expects to record a significant increase in sales in 2014. Mercedes-Benz Trucks plans to further consolidate its excellent position in Europe by offering a completely new range of products and exploiting the high level of acceptance it enjoys on the European market. The division will also further improve its market position in Brazil through investments in manufacturing facilities, products, and sales operations. Sales are expected to develop positively in the NAFTA region and increase significantly from the 2013 figure. Additional BharatBenz model series to be launched on the Indian market are expected to make a key contribution to sales growth in Asia. Daimler Trucks will also be able to benefit from the anticipated slight market growth in Japan.

Medium-term goals remain unchanged. Plans still call for sales at Daimler Trucks to exceed 500,000 units in 2015 and reach 700,000 units in 2020. The division seeks to record return on sales of 8 percent across the business cycle.

Photograph (L-R): Daimler Trucks’ BharatBenz, FUSO, Mercedes-Benz and Freightliner brands.