Mercedes-Benz Spearheads Growth For Daimler In Q3 As Daimler Trucks Witness Sales Decline
Daimler AG reported better than expected growth in earnings per share in Q3, as the continual growth momentum in Mercedes-Benz boosted results. However, lower truck sales, especially in the NAFTA region, took a toll on Daimler Trucks, dragging down the group’s top line growth.
The demand for medium and heavy trucks remained strong all through last year in the U.S. on the back of robust freight activity, fleet utilization, and growing profitability for fleet operators as crude oil prices continued to decline at a fast pace. Unit sales in the North American Heavy Truck Market grew by 12% in 2015, but the demand has weakened this year. The weaker Class 8 registrations are due to the cooling off phase, as refilling of fleet took place aggressively in the last couple of years. Weak overall investment is expected to decrease demand for Class 6-8 trucks by ~15% in 2016.
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Although Daimler expects significantly high growth for Mercedes-Benz this year, its outlook is somewhat dampened on the back of lower anticipated sales and EBIT for the Daimler Trucks division.
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