© Reuters. FILE PHOTO: Daimler AG CEO Dieter Zetsche, CFO Bodo Uebber, Martin Daum, head of Daimler’s truck and bus division and Joerg Howe, Chairman of the Supervisory Board attend the company’s annual news conference in Stuttgart, Germany, February 6, 2019. REUTER
BERLIN (Reuters) -Daimler Truck has raised its profit and revenue guidance due to an easing of supply chain constraints, stronger demand in its core markets and the after-sales business, the company said on Monday.
The company has updated its guidance for adjusted returns on sales in its industrial business to a range of 8.5% to 10% from 7.5% to 9% previously for the financial year 2023, it said on Monday.
The truck and busmaker now expects revenue to reach 56-58 billion euros ($63.79 billion), from 55-57 billion previously, with unit sales forecast around 20,000 higher to a range of 530,000 to 550,000.
Its adjusted return-on-sales forecast rose to 11-13% for its North America division, 8-10% for its Europe division, and 4-6% for its Asia division.
Its forecast for Daimler (OTC:) Buses was raised to 3-5% from 2-4% previously.
The company also announced a share buyback program starting August 2023 of up to 2 billion euros, to be acquired over up to two years.
Daimler Truck forecasts a slight increase in its group investments and research and development costs. It also foresees a significant increase in its free cash flow of the industrial business segment.
($1 = 0.9092 euros)
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