(Bloomberg) -- Daimler Truck Holding AG lowered its outlook for 2024, following other truckmakers who have trimmed forecasts on softening sales as demand in Europe and Asia weakens.
The German manufacturer now expects group revenue of as much as €55 billion ($59.6 billion) this year, down from as much as €57 billion previously.
The shares fell 6.2% in Frankfurt on Thursday morning. The stock is up just over 5% year to date.
Earnings before interest and taxes is expected to be “significantly below” last year, with adjusted Ebit slightly lower, the company said. Second-quarter adjusted Ebit was €1.17 billion.
The outlook means the group will now “have to work even harder to close the gap” with competitors, Chief Executive Officer Martin Daum said on an earnings call Thursday, even though he said the results mark “another solid second quarter.”
Truckmakers are adjusting forecasts due to lower demand levels after working down record order backlogs following the pandemic. Paccar Inc. recently trimmed its outlook for heavy truck sales in the US and Canada, while Volvo AB reduced its projection for the Chinese market, where a protracted real estate crisis is weighing on construction activity.
Daimler Truck flagged earlier in July that it could cut its forecast due to soft demand in China, with the company taking a €120 million impairment charge on the value of its joint venture in the country. In May, the company had noted increasing headwinds in Europe.
Daum said in March that the company expects a boost in sales from the transition to zero-emission vehicles from 2025 or 2026 onward, adding that the slow progress in expanding electric chargers in Europe and the US is threatening the shift.
(Updates with shares in third paragraph.)
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