Supply chain disturbances are triggering a production stockpile at the world’s biggest truckmaker, Daimler Trucks.
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Shares of Daimler Truck struck a fresh all-time high Friday, surging more than 17%, after publishing record full-year revenue and revealing a 2 billion euro ($ 2.16 billion) share buyback program.
The German truck maker published better-than-expected pretax incomes of 5.5 billion euros for 2023, up 39% on the previous year’s 4.4 billion euros. Analysts had actually anticipated EBIT (incomes before earnings tax) of 5.2 billion euros.
Daimler Truck’s CEO, Martin Daum, informed CNBC that the business had actually formerly recommended that its results would be at the upper end of its projections following a “red-hot” 2023.
“If we say upper end, we mean upper end,” he informed CNBC’s Annette Weisbach.
In a declaration, Daimler explained 2023 as a record year for the business, buoyed by excess need following the supply chain restraints of2022 But it warned that profits and incomes were most likely to be flat in 2024 in the middle of “difficult economic conditions.”
Daum stated cost pressures would likely weigh on the business somewhat in 2024, however identified the outlook as one of “sunny conditions.”
“We’re going back to a good year,” he stated. “Normalization being back slightly, but still on a good level.”
Daimler likewise stated it would perform its buyback program throughout the coming 24 months and proposed a dividend of 1.9 euros per share for 2023, up from 1.3 euros the previous year. Daum stated the relocation was a sign of the health of the business.
“We invest a lot,” he stated. “We will continue in that pace but we still will have leftover money and that certainly belongs to our shareholders.”
It follows comparable relocations by other car makers consisting of Mercedes and General Motors, which likewise revealed share buybacks and increased dividends over current months to return money to financiers.
“This is what not just our company but in general healthy well-financed companies with a solid balance sheet can and will do,” he included.
