Daimler Truck FY23 Results Climb, Lifts Dividend; To Pay EUR 7K Bonus; Stock Up

(RTTNews) - Shares of Daimler Truck Holding AG (DTRUY) were climbing around 14 percent in Germany afer the vehicle maker reported Friday higher profit and sales in its fiscal 2023.

Further, the company announced that its Boards will propose to the Annual General Meeting on May 15 a dividend payment of 1.90 euros per share, up from last year's 1.30 per share.

Daimler Truck also expects fiscal 2024 revenue and adjusted EBIT on 2023 level.

Martin Daum, Chairman of the Board of Management of Daimler Truck, stated that the company is in very close reach of 2025 ambition.

Further, citing the strong annual results, Daimler Truck announced a profit-sharing bonus of 7,000 euros to roughly 25,000 tariff-scale employees in Germany, who will receive it with their April 2024 pay.

Daimler Truck said it benefited from strong demand in its key commercial vehicle markets and increased its earnings per share, EBIT, revenue and unit sales, despite ongoing challenging conditions, supply bottlenecks in key regions and geopolitical uncertainties.

Looking ahead for fiscal 2024, Daimler Truck is expecting its adjusted EBIT on prior year level, and revenue between 55 billion euros and 57 billion euros. Daimler Truck anticipates unit sales in 2024 in a range between 490,000 and 510,000 units, down from prior year's 526,053 units.

In fiscal 2023, Daimler Truck's earnings per share amounted to 4.62 euros, up 43 percent compared to 2022. Adjusted EBIT jumped 39 percent from last year to 5.49 billion.

Revenue increased 10 percent to 55.9 billion euros in 2023 from previous year's 50.9 billion euros, supported by improved net pricing as well as positive volume and product mix effects in unit sales.

The company sold 526,053 units of trucks and buses in the year, 1 percent higher than last year, despite supply bottlenecks, which prevented even higher sales.

The Company sold 3,443 zero-emission trucks and buses, 277 percent more than in the previous year.

Amid a normalized ordering behavior, incoming orders in 2023 decreased 18 percent compared to the previous year.

Regarding its profit-sharing bonus, the company said the payment follows a new calculation logic that the company management and the General Works Council agreed on last year. It is based on the model for managers, which aligns the contribution of all employee groups even more closely with the company's economic success.

Daimler Truck, which has been giving profit-sharing bonus for tariff-scale employees since 1997, last year paid 6,300 euros and a one-time appreciation bonus of 1,000 euros.

In Germany, Daimler Truck shares were trading at 42.97 euros, up 13.74 percent.

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