WionDrive News Desk 
Daimler Truck issued a cautionary outlook on Thursday, warning of challenging conditions ahead as it reported third-quarter earnings. CFO Eva Scherer highlighted the increased volatility in Germany, pointing to the political instability caused by the collapse of the German government as a significant concern. “We see a lot of volatility and uncertainty that is not going to help,” Scherer said, emphasizing the company’s desire for clarity and stability in its key markets. Germany, where Daimler Truck holds a market share roughly double that of the European Union, is critical to the company’s performance.
Despite these concerns, Daimler Truck reported a marginally better-than-expected core profit for the third quarter. The company’s overall core profit for the period ending September 30 was 1.19 billion euros, just above the 1.14 billion euros forecast in a company-compiled poll. A strong performance in North America, where adjusted earnings before interest and taxes rose 2% to 725 million euros, helped offset a sharp 47% decline in core profit at its Europe-focused Mercedes-Benz business, which fell to 283 million euros.
Scherer expressed frustration over the lack of an economic recovery in Germany, stating, “We have been waiting for an economic recovery for a while now. Unfortunately, there are no signs of an improving situation.” The company also faces external risks, including the potential for tariffs on vehicles manufactured in Mexico if Donald Trump secures a victory in the U.S. presidential race. Scherer reassured investors that Daimler Truck has flexibility in production, noting, “We are able to produce every truck model and bus model in the U.S. and in Mexico.”
Shares in Daimler Truck rose 3.8% in early trading following the earnings release, and the company confirmed its guidance for the year. However, it had already reduced its annual outlook in July and announced in August that it would cut hours for some employees in Germany due to weak demand in Europe and Asia.
