Daimler Truck expects Q2 North American orders to be roughly on Q1 levels
By Amir Orusov and Ilona Wissenbach
(Reuters) -Daimler Truck, one of the world's biggest truckmakers, told analysts on Wednesday that second-quarter orders in its Trucks North America segment will be roughly on par with the first quarter levels.
Late on Tuesday, the company cut its full-year operating profit and revenue forecast, reflecting lower expectations for its North American business on heightened demand uncertainty due to U.S. duties.
The effect of U.S. tariffs on first-quarter profitability was minor, chief financial officer Eva Scherer said on the call, adding the impact was mainly on demand.
Profitability is ensured for the North American segment in the second quarter though lower than in the first quarter, Scherer said. However, the order books for the second half of the year was not filled yet and the company needed a stronger order momentum, she added.
In April, Daimler's peer Traton said U.S. truckers were deferring orders over fears of a global recession, while Swedish Truck maker Volvo cut its North America truck market outlook amid tariff-related uncertainty.
As for the U.S.-China trade deal slashing reciprocal tariffs, it is too early to predict but the deal may be positive for orders in the second quarter, Scherer said.
Commenting on the billion-euro cost-cutting programme launched in March, Scherer said the company booked a provision in the mid-three-digit million euros range in the second quarter.
The truckmaker has already received the necessary approval to reduce personnel-related costs and increase flexibility of the German locations, the company said in a press release.
As for the European market, Daimler Truck prioritizes profitability over the market share, the finance chief said, adding the company did not want to regain the lost market share in Europe through excessive incentives.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
27 minutes ago
- Yahoo
Trading Day-Good vibrations turn sour
By Jamie McGeever ORLANDO, Florida (Reuters) - TRADING DAY Making sense of the forces driving global markets By Jamie McGeever, Markets Columnist I'm excited to announce that I'm now part of Reuters Open Interest (ROI), an essential new source for data-driven, expert commentary on market and economic trends. You can find ROI on the Reuters website, and you can follow us on LinkedIn and X. The US and China have reached a trade deal, or at least agreed on the framework of a deal, which together with surprisingly soft U.S. inflation data, gave markets a lift on Wednesday. But Wall Street's gains were mild, and they were later wiped out by rising tensions in the Middle East. In my column today I look at the 'equity risk premium' and other metrics that suggest relative U.S. equity and bond valuations are getting very stretched. More on that below, but first, a roundup of the main market moves. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. 1. China's latest trade truce with US leaves investors nonethe wiser 2. Dollar keeps losing market share but euro slow tobenefit: ECB study 3. US importers turn to brokers to navigate Trump-eratariffs, at a cost 4. When it comes to a US debt default, never say never 5. No longer the big outlier, Italy sees bond renaissance:Mike Dolan Today's Key Market Moves * Wall Street ends in the red, having earlier hit highslast seen in February-March. The S&P 500 falls 0.3%, the Nasdaqloses 0.5%. Consumer cyclicals sector falls 1%, and energy isthe best-performing sector up 1.5%. * U.S. stock market volatility, as measured by the VIXindex, falls to its lowest in almost four months earlier in theday. * Treasuries rally, also boosted by soft inflation and astrong 10-year auction. Yields end down as much as 7 bps, curvebull steepens slightly. * Oil hits a two-month high, rising more than 4% aftersources say the US is preparing to evacuate its Iraqi embassydue to heightened security concerns in the region. Brent crudereaches $69.77/bbl, WTI rises above $68/bbl. * Precious metals rise, led by a surge in platinum to a4-year high above $1,280/oz. Platinum rose as much as 5% and isup over 20% in June, which would be its best month since 2008. Good vibrations turn sour It's a "done" deal, according to U.S. President Donald Trump, although the he and Chinese leader Xi Jinping still have to finalize the wording of the trade agreement between the two superpowers and sign off on it. The main points of the deal appear to be: China will remove export restrictions on rare earth minerals and other key industrial components; U.S. tariffs on Chinese goods will total 55%; Chinese tariffs on U.S. goods will total 10%. Trump could not have been more enthusiastic in his praise for the agreement on Wednesday, and Commerce Secretary Howard Lutnick said 'deal after deal' with other countries will follow in the weeks ahead. Yet, judging by the relatively muted market reaction, investors are less enthused. And given the chaotic and unpredictable nature of the Trump administration's tariff announcements thus far, the irony of Treasury Secretary Scott Bessent calling on China to be a "reliable partner" in trade negotiations will not be lost on some observers. Especially, one suspects, in Beijing. Based on these proposed China levies, and with the US expected to conclude more trade deals in the coming weeks, the overall U.S. effective tariff rate will be lower than feared a couple of months ago. That's a relief. But the effective tariff rate of around 15% that many economists expect will still be significantly higher than the 2.5% rate at the end of last year, and would be the highest since the 1930s. Also, as the May inflation figures showed, tariffs have yet to be felt on prices. Investors - and Fed policymakers, who meet next week - are in a state of limbo. How will corporate profits and consumer spending be affected? What proportion of the tariffs will companies "swallow", and how much will they pass on to their customers? Zooming out, inflation appears to be cooling around the world, although this trend is expected to reverse once tariffs start to fuel higher goods price inflation. Figures on Wednesday showed that U.S. consumer inflation and Japanese wholesale inflation were lower than expected in May. These reports follow similar numbers from Europe recently, and China remains stuck in its battle against deflation. Next up is India, which releases consumer inflation figures on Thursday, which are expected to show annual inflation slowed to 3.0% in May, the lowest in more than six years. Another focus for investors on Thursday will be the auction of 30-year U.S. Treasury bonds. US stocks-bonds warnings flash amber again Calm has descended on U.S. markets following the 'Liberation Day' tariff turmoil of early April. But Wall Street's rally has revived questions about U.S. equity valuations, as stocks once again look super pricey compared to bonds. Since the chaotic days of early April, U.S. equities have rebounded fiercely, with the S&P 500 up 25%, putting the Shiller cyclically adjusted price-earnings (CAPE) ratio for the index in the 94th percentile going back to the 1950s, according to bond giant PIMCO. Stocks are looking expensive in absolute terms, and in relation to bonds. The equity risk premium (ERP), the difference between equity yields and bond yields, is near historically low levels. According to analysts at PIMCO, the ERP is now zero. The previous two times it fell to zero or below were in 1987 and 1996–2001. In both instances, the ultra-low ERP precipitated a steep equity drawdown and sharp fall in long-dated bond yields. "The U.S. equity risk premium ... is exceptionally low by historical standards," they wrote in their five-year outlook on Tuesday. "A mean reversion to a higher equity risk premium typically involves a bond rally, an equity sell-off, or both." But reversion to the mean doesn't just happen by magic. A catalyst is needed. Equities have recovered largely because they were oversold in April, trade tensions have been dialed down, and investors remain confident that Big Tech will drive solid AI-led earnings growth. So even though huge economic, trade, and policy risks continue to hang over markets, there is no sign of an imminent catalyst that would cause an equity market selloff. CHEAP FOR A REASON The flip side of equities looking expensive is that bonds look like a bargain. Indeed, the relative divergence between stocks and bonds is such that, by one measure, U.S. fixed income assets are the cheapest relative to equities in over half a century. Using national flow of funds data from the Federal Reserve, retired strategist Jim Paulsen calculates that the total market value of U.S. bonds as a percentage share of the total market value of U.S. equities is the lowest since the early 1970s. "Since the aggregate U.S. portfolio is currently aggressively positioned, investors may have far more capacity and desire to boost bond holdings in the coming years than most appreciate," Paulsen wrote last week. But bonds are 'cheap' for a reason. Washington's profligacy – the reason ratings agency Moody's recently stripped the U.S. of its triple-A credit rating – and inflation worries have kept yields stubbornly high. The term premium - the risk premium investors demand for holding long-term debt rather than rolling over short-dated loans - is the highest in over a decade, reflecting concerns about Uncle Sam's long-term fiscal health. And the diagnosis here shows no signs of improving. Trump's 'Big Beautiful Bill' is expected to add $2.4 trillion to the U.S. debt over the next decade, according to the nonpartisan Congressional Budget Office, likely putting more upward pressure on yields. Of course, equity investors do seem to be pricing in a very rosy scenario, and the past few months have shown how quickly the market landscape can change. The U.S. economy could weaken more than expected, the trade war could escalate, or there could be a geopolitical surprise that causes bond yields and equity prices to fall. Investors should therefore be mindful of the warnings being sent by ERPs and other absolute and relative valuation metrics. However, they should also remember that stretched valuations can get even more stretched. As the famous saying goes, markets can stay irrational longer than investors can remain solvent. What could move markets tomorrow? * India CPI inflation (May) * UK trade (April) * UK industrial production (April) * ECB's Jose Luis Escriva and Frank Elderson speak atseparate events * Brazil retail sales (May) * $22 billion U.S. 30-year Treasury note auction * U.S. weekly jobless claims * U.S. PPI inflation (May) Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. (By Jamie McGeever; Editing by Deepa Babington) Sign in to access your portfolio
Yahoo
36 minutes ago
- Yahoo
Europe, we're not leaving. Period.
There are some headlines making the rounds claiming that TechCrunch is 'pulling out of Europe' and shuttering its coverage of European startups. This is flat-out wrong. It misrepresents who we are, what we do, and — most of all — what we believe. The recent changes at TechCrunch are not about retreat. They are about realignment and reinforcement. This new chapter is fueled by our partnership with our sister company, Foundry, which was brought under the same ownership to create a tech media entity with unparalleled global scope. To be clear, Foundry is a powerhouse of international technology journalism. Its portfolio includes established and respected brands like PCWorld, Macworld, CIO, and TechAdvisor, with a vast network of journalists and deep-rooted expertise in local and regional tech ecosystems across Europe and the world. The suggestion that our new ownership believes international coverage is unessential is patently false. The entire purpose of bringing TechCrunch and Foundry together is to create a stronger, more globally focused media platform. Europe is where fintech regulation is rewritten, where quantum startups spin out of Max Planck labs, where climate-tech pilots become the standard for the rest of the planet. In 2024 alone, European founders raised over €40 billion; many of the unicorns we covered last year were born on this continent. If you care about the future of technology, you have to be here. And we are. As we integrate the strengths of both TechCrunch and Foundry, here is our promise to the founders, investors, and readers in Europe and beyond: To the startup community: Keep your tips, term sheets, and tantrums coming. Send them to tips@ or ping our encrypted channels. We'll be listening — louder and more broadly than ever. TechCrunch isn't retreating from Europe. We're doubling down. — Michael Reinstein, Chairman and Publisher Sign in to access your portfolio
Yahoo
39 minutes ago
- Yahoo
Oracle beats quarterly results estimates on cloud services demand, shares rise
(Reuters) -Oracle beat Wall Street estimates for fourth-quarter results on Wednesday, boosted by growing demand for its cloud offerings from companies deploying artificial intelligence, sending its shares up 7% after the bell. The company's growth is largely nurtured by its Oracle Cloud Infrastructure (OCI) solution and support for AI workloads. Analysts see the company becoming more of a cloud service provider that relies less on software growth. "We expect our total cloud growth rate — applications plus infrastructure — will increase from 24% in fiscal year 2025 to over 40% in fiscal year 2026," said CEO Safra Catz. Revenue for the quarter ended May 31 stood at $15.90 billion, compared with the analysts' average estimate of $15.59 billion, according to data compiled by LSEG. Quarterly revenue at Oracle's largest unit, cloud services and license support, grew 14% to $11.70 billion from last year. Oracle has also been introducing AI assistants, advisers and agents. Its AI Agent Studio, announced in March, is designed to help customers and partners build their own customized AI agents. Excluding items, the company earned $1.70 per share in the fourth quarter, compared with estimates of $1.64 apiece.
