Daimler Truck sees high demand, high costs

STORY: Rising prices and inflation could weigh on Daimler Truck’s second quarter.

That’s according to the German truckmaker Tuesday (May 17).

But the company said it could pass those costs on to customers as it sees record levels of demand.

Daimler Truck assured buyers that once costs went down again prices could do likewise.

The firm said a semiconductor shortage was the main cause of inventory backlogs.

However, it projected that chips should be more available in the second half of the year.

Daimler said it expected to make up to 520,000 vehicles this year.

And with rising prices and high demand the company believes it could boost revenues to as high as $52 billion.

They rose 17% in the first quarter to around $11 billion.

Daimler Truck shares were up over 4% after the report.