If not A wonderful quarter for truck transport companies In the second quarter, especially Truck carriersThe expectations for companies that made or sold trucks were worse.
Not every company did. Things are going well enough with other operations at Rush Enterprises Truck (Nasdaq: Rusha) It raises its profits. As the Cummins Inc. (NYSE: CMI).
But in its profit calls with analysts, many companies that looked at the future – including these two operations mentioned above – looked at the new heavy cars market that are lukewarm and terrible at best.
Bread numbers were captured by FTR in their last initial estimate of June and July 8 orders. The June orders book was 8,900 units, a decrease of 25 % of May and a decrease of 36 % from the previous year. July was stronger in 12700 units, but that decreased by 7 % on an annual basis.
FTR said that the 12 -month -old cycle in July showed a 15 % request on an annual basis.
Jennifer W. Romsie, CEO Cummins, has set a number on the expected size to decrease that company’s call with analysts. (All quotes in this article are the text call texts).
She said that Camens expects heavy and medium trucks in North America to decrease by 25 % to 30 % in the third quarter. “We have seen truck orders recently reaching their lowest levels, and the original equipment manufacturers have started in low work weeks during the next three weeks,” said Romsie, according to a copy of the profit call. “The duration of the decline in demand in the truck markets in North America depends largely on the path of the broader economy, and the development of trade, tariffs and speed policies in which organizational clarity appears.”
Margin Rush, the CEO of Rush Enterprises, was the most explicit in his outlook at the new truck market for the 2025 balance.
In response to the analyst’s question, Rush said to his company’s call that the production of the new trucks “will be largely in all the original equipment manufacturers, because there is no demand there because the uncertainty exists.”
While I mentioned the uncertainty of the definitions by many executives as a reason for the uncertainty, a modern development that occurred near the start of the profit season – the decision of the Environmental Protection Agency Cancel “Exposure Discovery” This allowed the agency to take steps to regulate greenhouse gases – another question mark on the market for new trucks was given.
EPA The new base was released in 2022. The main deadline is the condition of calling for a decrease in more than 80 % in nitrogen oxides – by 2027. The last recession of the Environmental Protection Agency Authority in regulating greenhouse gases under the conclusion of exposure is not immediately invalidated by the nitrogen base.
“We pulled green gases, but this did not give any clarity to the emissions perspective.” In reference to the different current and planned nitrogen oxides standards at the 2027 base, Rush asked about the final number. “Will you go to a place in the middle?” He said. “The engine manufacturers and the manufacture of original equipment have not so far directed by the government.”
Paccar R. Prestton Feight (Nasdaq: pcar) On the profit call of that company, he said he believed that the rules of greenhouse gas emissions are in EPA 2024 Base for Biden Administration He was seen as pushing zero emissions “that could not change.” But he also said that he did not expect additional greenhouse gas regulations on hard trucks.
“If the base of nitrogen oxide is canceled, this should lead to a decrease in the cost” which will encourage customers to buy trucks that may start later this year. “
Rush was also martyred in California as a specifically troubled market. According to what was reported, the Series 8 sales in California were very weak for several months, given the uncertainty resulting from the state Withdraw now the base of the advanced clean fleets And prohibited (But the state challenge) The base of the advanced clean trucks, which imposed sales of zero emissions vehicles.
“I don’t want to be like the entire country like California, it was the last 1.5 years,” said Rush. “But from the point of view, it was very difficult on the truck sales side.”
Although expectations were generally dark, they were not completely pessimistic. For example, Rush said reports related to the next demand “a little better than it was in the first quarter. It is not great but you can see slight green buds there, but not much.”
From the headquarters of the German company, Eva Shearer, the financial manager of the Daimler truck (Xetra: dtg.de) In the call of her company, the call of her company gave an example of these green buds. She said that July showed “Beck App for activity.”
It will come after a very difficult quarter. Karen Radstrom, CEO of Daimler Truck, started his statements to the call with optimism about the North American sectors. He said that the truck sector in Daimler in North America was “a strong contributor to our results, as it achieved 12.9 % return on sales despite the 20 % decrease in unit sales.”
But Shearer said that the trucks in North America were the only part of the Daimler Empire in the quarter that had a negative effect of the wine before benefits and taxes, “in the first place due to economic uncertainty in the United States, which led to a decrease in sales volumes.”
Radstrom said in half, 135,000 trucks sold in North America decreased by 7 % on an annual basis.
However, the July demand flow was strong enough that Shearer said it believes that the production numbers in North America can range between 135,000 and 155,000 per quarter.
Discussion about calls related to definitions that are repeatedly and repeatedly to the same term: uncertainty. Feight’s comments on the definitions were similar to what he heard in other calls.
He said: “If we get confidence and certainty about the structures of customs tariffs in the third quarter, I think that the reaction of the customers to this will be positive.” “I think this will be favorable for Paccar. So there are some few causes of weight there for our trust with the progress of the year here.”
But definitions may also mean that prices are on the horizon.
On calling for profits for the company of the patriotism of the trailer (NYSE: WNC)The President and CEO Brent Yigi said that the company is working with “local sources by 95 % and (A) the United States -based manufacturing imprint,” that protection from the higher definitions has its limits.
“We are not fully immune from increased costs, especially in the main inputs and services,” said Yigi. “Until now, we have succeeded in stopping price adjustments, and we continue to focus on operational efficiency and cost discipline to make up for the largest possible pressure. However, based on the current track, we expect prices to be modified for 2026 to reflect the emerging cost environment.”
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