Daimler Truck to prioritise investment over profit once margin target reached
Reuters
Published Dec 10, 2021 05:14AM ET
FRANKFURT (Reuters) - The newly spun-off truckmaker Daimler (OTC:DDAIF) Truck will prioritise investment in future technologies over boosting its profits if it achieves the two-digit margin it is targeting, CEO Martin Daum said at a roundtable on Friday.
"The fact that we still exist is due to two things: because the company has always made money, and there were hard times in between, and secondly, because we always invested in the future," Daum said, speaking to journalists hours after the company was listed on Frankfurt Stock Exchange.
CFO Jochen Goetz added that although he hoped the worst of the chip supply chain crisis had passed in the third quarter of this year, uncertainty on the issue would continue to have "serious consequences" for Daimler Truck into 2022.
Daum told German newspaper Automobilwoche last month the company would sell a "mid five-digit number" fewer vehicles than it could have because of lacking chips, resulting in several billion euros in lost revenues.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.