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Daimler truck profit nearly doubles year-over-year

Jason Cannon February 6, 2014

Daimler AG announced Thursday that profits from its global truck division nearly doubled in the fourth quarter from a year ago.

Daimler Trucks recorded earnings of $762 million – a 92 percent jump from the previous year’s quarter. Revenue grew 9 percent to $11.5 billion. The truck segment’s unit sales climbed 19 percent to 134,550, the company said.

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A bustling truck business could’t drive profitability company-wide. The German truck and car manufacturer reported a 36 percent drop in net profit to $2.27 billion, despite an 8 percent revenue growth.

“After the world market for medium- and heavy-duty trucks expanded perceptibly in 2013 despite difficult market conditions, further moderate growth in global demand is expected this year,” the company said in its Thursday release.

In North America, Daimler said it anticipates “significant” market growth of up to 10 percent due to “the increasingly dynamic economy.”

Sales by Daimler Trucks increased to 484,200 units in 2013, up from 462,000 last year.
The revival of unit sales that was apparent especially in the last quarter made a positive contribution to the development of earnings. On the one hand, there was a recovery of the Brazilian market; on the other hand, there was positive impetus from the business in Western Europe, partially due to purchases being brought forward because of the introduction of the stricter Euro VI emission standards in 2014.
The main areas of investment at Daimler Trucks were for the Arocs (the new heavy-duty construction-site truck) as well as various projects for the global standardization of engines and other main components. The group also invested in the expansion of its production capacities in Brazil and in the new BharatBenz plant in India.

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