(News Bulletin 247) – Daimler Truck suffered the largest drop in the DAX index on Tuesday on the Frankfurt Stock Exchange following the publication of better than expected first quarter results and the maintenance of its annual objectives.

The German truck manufacturer reported this morning a 78% jump in its first-quarter adjusted earnings before interest and tax (Ebit) to 1.16 billion euros, far beating the consensus of 976. millions of euros.

Thanks to truck deliveries up 15% to 125,172 units, its turnover increased by 25% to 13.2 billion euros, again exceeding analysts’ expectations.

Very closely followed, the operating margin of Mercedes-Benz, its flagship brand, improved from 7.9% to 8.8%, at the top of the objectives communicated by the group (i.e. 7% to 9%).

Despite this rather better than expected performance, Daimler Truck has maintained its outlook for the group as a whole, namely, an annual turnover of between 55 and 57 billion euros with a significant improvement in its Ebit adjusted.

‘While these first quarter results are undeniably a step in the right direction, it will take several more quarters of sustained performance improvement for investors to regain confidence in a Mercedes-Benz turnaround and for that to trickle down to the market valuation’, RBC analysts warn this morning.

On the Frankfurt Stock Exchange, Daimler Truck shares fell 3.8% on Tuesday morning following the publication of these figures.

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