The manufacturer’s sales increased, but there are problems with free cash flow.
(Photo: Bloomberg)
Munich Logistical problems, of all things, are clouding Daimler Truck’s business. In concrete terms, the global number one among manufacturers of heavy articulated lorries and buses is struggling with full warehouses because there is a lack of truck drivers and semiconductors. The Swabians are currently unable to deliver thousands of finished vehicles to their customers.
This is reflected in the balance sheet of the independent subsidiary of the car manufacturer Mercedes-Benz. That means: In the first quarter, Daimler Truck actually didn’t make any money, but burned 628 million euros in the industrial business. The free inflow of funds (free cash flow) is negative, in the second quarter the minus is even 756 million euros.
Free cash flow is one of the most important financial indicators, especially for shareholders. Finally, it shows whether a company has sufficient liquidity to be able to pay out a dividend, for example. Daimler Truck is therefore trying to classify the currently unpleasant development. For the year as a whole, the free inflow of funds should be around plus 1.6 billion euros.
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