Daimler Truck raises 2023 guidance for revenue, profit

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 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)

(Reporting by Victoria Waldersee and Maria MartinezEditing by Marguerita Choy)