Daimler Truck saw its financial services revenue more than double in the past year as new business volume rose by double –digits.
The German manufacturer of commercial vehicles also recorded an increase in outstandings.
Board Chairman Martin Daum said in today’s earnings release that 2023 was a “record year” for Daimler Truck as it surpassed sales expectations.
By the numbers
- In North America, Daimler Truck’s financial services’ new business volume was 11.3 billion euros ($12.2 billion) in 2023, up 20% from the previous year.
- Financial services revenue grew 52% annually to $2.9 billion in 2023.
- North American contract volume grew 17% YoY to $30.6 billion.
Rapid expansion
Daimler Truck said in its annual report that it plans to use its growing financial services’ business to grow its larger service sector.
“The segment plans to increase its share of the core business of leasing and financing to around 30% of all trucks and buses sold by Daimler Truck in the medium term,” according to the release.
Daimler Truck is also expanding in European markets. The company moved into Eastern Europe as well as opening operations in France in the past year. It operates in 16 global markets after the division was spun out of Mercedes-Benz in December 2021. Daimler Truck Financial Services has entered nine markets in the past 15 months and is poised to continue growth on the back of strong contract volume, the company said in its earnings report.
The entire Daimler Truck business inclusive of financial services posted strong earnings Friday. The company expects that overall revenue could rise as much as 60% in the next five years.
Shares of Daimler Truck Holding AG [FRA: DTG.F] closed at $43.74 on Friday, up 15.65% or $5.92 from market open. The company has a market cap of $35 billion.
Registration is now open for Equipment Finance Connect, the nation’s only dealer-centric equipment lending and leasing event, which will take place May 5-7 in Nashville, Tenn. Learn about the event and free dealer registration at EquipmentFinanceConnect.com.
