German truck and bus company, Daimler (OTC:MBGAF) Truck, saw its shares drop 4% to EUR28.47 at 05:58 ET (09:58 GMT) on Tuesday, following a disappointing third-quarter earnings report announced today. The company's net profit fell to EUR957 million ($1.03 billion), a decrease from EUR990 million year-over-year, largely due to supply chain complications that resulted in a decline in vehicle sales from 134,972 to 128,861 units.
Despite the lower-than-expected adjusted EBIT of EUR1.34 billion, down from EUR1.27 billion, Daimler's industrial business segment experienced an uptick in return on sales from 9.4% to 9.8%. This increase is attributed to the company's focus on cost efficiency and strategic management.
In addition to the improved return on sales, Daimler also nearly doubled its free cash flow to 1.09 billion from EUR592 million. This substantial increase reflects the company's commitment to maintaining financial stability and its ability to generate significant cash inflow despite the challenging market conditions.
The recent drop in share price and Q3 earnings comes amidst a broader industry struggle with supply chain disruptions. Many companies have been grappling with these issues, which have led to decreased production and sales across the sector.
The financial results underscore the challenges Daimler Truck faces as it navigates ongoing supply chain issues while striving for cost efficiency and profitability in an increasingly competitive market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.