Daimler Truck core profit just beats expectations but Europe still weak

(Reuters) – Third-quarter core profit at Germany’s Daimler Truck just beat expectations, the firm said on Thursday, driven by a strong performance in North America even as Europe continued to weigh.

Adjusted earnings before interest and taxes came in at 1.19 billion euros ($1.28 billion), compared to analysts’ average estimate of 1.14 billion euros.

Core profit rose 2% at its Trucks North America segment to reach 725 million euros but fell 46% at its Europe-focused Mercedes-Benz (OTC:) business to 283 million euros.

The truckmaker, which also makes yellow school buses under the Thomas Built brand, confirmed its latest outlook for the year.

It had its outlook in July and said in August that it would reduce hours for some employees in Germany as a result of weak demand in Europe and Asia.

Orders, an indicator of future sales, fell 4% in the quarter to 94,709 units, signalling further tough times ahead.

Daimler Truck chairman Joe Kaeser said in September that the firm’s new CEO, Karin Radstrom, would have to get the firm ready for a prolonged slowdown in demand.

He did not specify what measures she should take.

($1 = 0.9309 euros)