Shares of Daimler Truck Holding AG, a renowned vehicle maker, saw a significant rise of approximately 14 percent in Germany. This is following the company's announcement of increased profit and sales for the fiscal year of 2023.
In further detail, the company proclaimed an anticipated proposal to its boards at the Annual General Meeting slated for May 15. The proposal involves an increase in the dividend payment to 1.90 euros per share, representing a significant increment from the earlier stipulated 1.30 per share.
Regarding the prospect for fiscal 2024, Daimler Truck is optimistic of a steady revenue and adjusted EBIT at the level of 2023. The statement by Martin Daum, the Chairman of Daimler Truck's Board of Management, emphasized the company's proximity to its 2025 goals.
Reinforced by impressive annual results, Daimler Truck decided to offer a profit-sharing bonus of 7,000 euros. This bonus extends to approximately 25,000 tariff-scale employees in Germany, who should anticipate its receipt along with their salaries in April 2024.
Daimler Truck acknowledges that its progression in the commercial vehicle market considerably boosted its earnings per share, EBIT, revenue, and unit sales. These advances persevered through multiple hindrances, including supply bottlenecks in crucial regions and geopolitical uncertainties.
Looking ahead, the company maintains expectations of a consistent adjusted EBIT in fiscal 2024, along with a projected revenue ranging between 55 billion and 57 billion euros. A prediction for unit sales in 2024 lies within a span of 490,000 to 510,000 units, a slight decrease from the previous year's 526,053 units.
Fiscal 2023 saw the company's earnings per share ascend by 43 percent to 4.62 euros, a significant increase from 2022. Adjusted EBIT also surged by 39 percent, rising to 5.49 billion from the preceding year. Revenue incrementally grew by 10 percent, reaching 55.9 billion in 2023, an increase from the previous year's 50.9 billion.
The company achieved a record selling figure of 526,053 units of trucks and buses that year. This represented a 1 percent rise from the prior year, despite supply restrictions which limited potential higher sales.
Daimler Truck also successfully sold 3,443 zero-emission trucks and buses. This was a hefty 277 percent increase from the preceding year. In contrast, incoming orders in 2023 saw an 18 percent drop compared to the previous year due to normalization of ordering behavior.
The company disclosed that its profit-sharing bonus follows a novel calculation model, devised by the company management and the General Works Council the previous year. This model is designed to align the contributions of all employee groups with the company's economic achievements more closely. Daimler Truck has been implementing a profit-sharing bonus for tariff-scale workers since 1997. The previous year saw payments of 6,300 euros and an extra appreciation bonus of 1,000 euros.
In the German financial market, Daimler Truck shares rose by 13.74 percent and were trading at 42.97 euros.
