By Helena Smolak
Daimler Truck has announced its outlook for 2024 earnings to remain on par with the previous year, accompanied by an increase in dividends as its revenue showed improvement in the fourth quarter.
Strong Fourth Quarter Performance
The German trucks and buses manufacturer reported fourth-quarter adjusted earnings before interest and taxes totaling 1.56 billion euros ($1.69 billion), a significant rise from the previous year's EUR1.03 billion. Revenue also saw a positive trend, reaching EUR14.95 billion in the quarter compared to EUR14.78 billion the year before.
While the adjusted EBIT exceeded analysts' expectations, reaching EUR1.56 billion, the revenue figures fell slightly below estimates of EUR15.01 billion based on a VisibleAlpha-polled consensus.
Unit Sales and Dividend Increase
Despite a decrease in unit sales - 140,132 units sold at group level in the fourth quarter compared to 155,072 units in the same period the previous year - Daimler Truck proposed a dividend increase to EUR1.90 per share from EUR1.30 per share, marking its second dividend as an independent company.
Future Outlook
Looking ahead to 2024, Daimler Truck anticipates revenue and adjusted EBIT to align with the previous year, with an adjusted return on sales for its industrial business ranging between 9.0% to 10.5%. Additionally, the company foresees a slight rise in free cash flow for its industrial business.
At the unit level, Daimler Truck projects sales figures to fall within the range of 490,000 to 510,000 units.
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