Daimler Truck Writes Down China Joint Venture, Puts Guidance Under Review

By Adria Calatayud

Daimler Truck Holding said it took a hit from a write-down of its China joint venture Beijing Foton Daimler Automotive due to a persistently weak market and that its full-year guidance is currently under review.

The German truck and bus maker said late Tuesday that it fully wrote down the book value of its China joint venture BFDA, resulting in a one-time hit of 120 million euros ($130.8 million). The company said the noncash charge will have a negative impact on second-quarter adjusted earnings before interest and taxes of its Asian trucks segment and its industrial business.

Daimler Truck's preliminary group EBIT was EUR1.08 billion for the second quarter, down from EUR1.38 billion reported for the same period last year. This missed analysts' estimates of EUR1.25 billion, according to consensus numbers provided by the company.

On an adjusted basis, the group's adjusted EBIT came to EUR1.17 billion, down from EUR1.43 billion and below consensus forecasts of EUR1.26 billion.

Daimler Truck said its Trucks North America and Daimler Buses segments exceeded market expectations, while the results of its Mercedes-Benz and financial services were below forecasts.

The company plans to publish full second-quarter results on Aug. 1.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

July 17, 2024 01:40 ET (05:40 GMT)

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