OEM earnings roundup
This month, all North American truck OEMs detailed their quarterly profits.
Here’s a rundown of the most recent reports:
Daimler: Daimler AG announced Thursday that profits from its global truck division nearly doubled in the fourth quarter from a year ago. 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.
Volvo: A 37 percent slide in fourth quarter profits will prompt Swedish truck-maker AB Volvo to lay off 4,400 employees this year. Citing the cost of updating its trucks, the company reported net profit of $84 million Thursday, down from nearly $134 million a year earlier. The profits decline came despite an 8 percent rise in sales and a 15 percent increase in truck deliveries to slightly more than 61,000 trucks.
Paccar: Paccar reported record annual revenues of $17.12 billion and net income of $1.17 billion for 2013 Friday, achieving the third best annual net profit in the company’s history and the 75th consecutive year of net income. Dan Sobic, PACCAR executive vice president, says Class 8 industry retail truck sales in the U.S. and Canada were 212,000 units in 2013. Paccar’s aftermarket parts business achieved record annual revenues in 2013.
Navistar: Navistar reports on a different fiscal year cycle than it’s peers, but reported in January it lost $154 million compared to a fourth quarter 2012 net loss of $2.8 billion. The net loss for fiscal year 2013 was $898 million, versus a net loss of $3 billion for fiscal year 2012.
The company says the Q4 loss was primarily due to unanticipated pre-existing warranty adjustments for its EGR-only engines, something that has been a drag on the company’s profitability all year.