On the one hand, demand remains high and the supply of semiconductors is better, so that unlike last year, no production stops are to be expected, explained CFO Jochen Goetz on Tuesday. On the other hand, however, there is a lack of other components and cyber attacks on suppliers are fueling concerns about the stability of the supply chain. The number of hacker attacks is increasing, but Daimler itself is not affected. "We expect another year of demand well above supply in 2023," said Goetz, but at the same time warned: "We are not sure that the supply chain is stable enough for higher volumes."

Analysts had expected an even higher profit target following the key figures published at the end of April, with an unexpectedly high operating profit and a yield of 8.8 percent. To date, the DAX-listed company has been forecasting significantly higher sales (2022: EUR 51 billion) and adjusted operating profit (2022: EUR 4 billion) and a return on sales in the range of 7.5 to 9.0 percent. With a stable supply chain, there is upside potential, said Goetz. The analysts at Stifel Research now assume that the outlook will be raised after the second quarter.

PRICE INCREASES TAKE EFFECT

From January to March, the DAX-listed company increased sales by 15 percent compared to the same quarter of the previous year to a good 125,000 units. Turnover soared by 25 percent to 13.2 billion euros, while consolidated net profit almost tripled to 795 million euros, as the company announced. Higher prices and more service business also contributed to the jump in profits. Last year's price increases are now taking effect, said Goetz. They should now remain stable, although raw materials such as steel are continuing to rise in price. Daimler still sees no signs of orders being canceled due to the weak economy.

The decline in incoming orders by eleven percent to around 123,000 units in the first quarter is not a headache for the world market leader for heavy trucks. The decline is due to the fact that the order books for 2024 are not yet open, explained Goetz. In the largest market, the United States, Daimler expects demand to increase in 2024 after talks with major fleet customers. The order books in Europe and the USA are so well filled that Daimler is practically sold out in both major regions in the current year.

(Report by Ilona Wissenbach. Edited by Olaf Brenner. If you have any queries, please contact the editorial team at frankfurt.newsroom@thomsonreuters.com)