DaimlerChrysler truck unit eyes 7 percent operating margin
"Plans also call for the average return on net assets to reach approximately 30 percent," the world's largest commercial vehicles manufacturer by volume said in a statement, without providing a concrete timeframe for the targets.
In the third quarter, operating profit jumped nearly 60 percent to $710.5 million (556 million euros) on 3 percent more revenue, translating to a margin of just below 7 percent as higher productivity, an improved model mix and better utilization rates lifted results. Truck sales gained 2 percent to 141,900 units.
"The Truck Group believes the remainder of the year will produce similar positive results for sales, revenue and earnings," the company said.
DaimlerChrysler expects to achieve "substantial" savings in the future through economies of scale, by launching for example its global heavy duty engine platform next year where the 200,000 units to be produced annually for Freightliner, Mercedes-Benz and Mitsubishi Fuso trucks will share about 90 percent of their parts.
DaimlerChrysler said it has an industry market share of more than 20 percent in the segment for trucks weighing more than 6 tons.
Smaller German rival MAN has launched a $13.2 billion (10.3 billion euros) hostile takeover offer for Swedish heavy truck specialist Scania in order to better compete with global giants such as DaimlerChrysler and Volvo AB.
DaimlerChrysler warned that a significant slowdown can be expected in the U.S. and Japanese truck markets next year, while by comparison the European market was expected to decrease only slightly and remain on an overall high level.
"We have prepared ourselves with various measures for the challenging market situation next year and expect to earn our costs of capital in 2007 as well," said Andreas Renschler, the DaimlerChrysler Board of Management member responsible for the Truck Group & Buses.
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