Daimler Truck starts trading as independent company

By Julian Buckley13 December 2021

Daimler Truck at Frankfurt Stock Exchange

Daimler Truck has started trading as an independent company on the Frankfurt Stock Exchange. This follows the spin-off from Daimler AG.

Shares are expected to be listed in the Regulated Market of the Frankfurt Stock Exchange on the DAX index by the first quarter of 2022.

In preparation for the move, Daimler Truck has highlighted the plan to increase performance and profitability of its segments as it moves towards CO2-neutral transport.

Based on proven cash generation and a strong balance sheet, Daimler Truck has received solid investment grade credit ratings.

Speaking in the stock exchange hall in Frankfurt, Martin Daum, chairman of the Board of Management of Daimler Truck Holding AG, said: “Today is a historic day for Daimler Truck. For 125 years, our truck and bus business was part of the Daimler Group - now we are becoming an independent, listed company. Making this possible organizationally was a tour de force. My thanks therefore go to our entire team for their unparalleled commitment over the past weeks and months.”

Daimler Truck is one of the largest global commercial vehicle manufacturers, with over 40 production facilities worldwide and more than 100,000 employees.

Ringing in change Daimler Truck has launched on Frankfurt Stock Exchange Ringing in change - Daimler Truck has launched on Frankfurt Stock Exchange as an independent company

Daimler Truck operates under seven brands: BharatBenz, Freightliner, FUSO, Mercedes-Benz, Setra, Thomas Built Buses and Western Star.

The company has targeted the following returns on sales in its industrial business by 2025. For example, Daimler Truck is specifically targeting an adjusted return on sales of 12% for the Trucks North America. For the Mercedes-Benz segment, the target is 10% adjusted return on sales. The company has targeted 9.0% for the Trucks Asia segment and 7.5% for the Daimler Buses (DB) segment.

For the new Financial Services business (DTFS), Daimler Truck has targeted an adjusted return on equity of 14%.

The company expects an adjusted return on sales across the industrial business of between 6.0% and 8.0% for 2021, despite semiconductor shortages and rising raw material prices. Despite these cost increases, Daimler Truck is expecting to achieve a 15% reduction in fixed costs across its industrial business by 2023. This is two years earlier than announced at the Strategy Day in May 2021.

As a listed company, Daimler Truck is intending to be a leader in zero-emissions transport. This will include accelerated development of battery electric (city) and fuel cell (inter-city) vehicles, which are forecase to make up 60% of sales by 2030.

Daimler Truck has targeted making its full model portfolio CO2-neutral in driving operation from 2039.

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