Daimler CEO Martin Daum Takes on Finance Role

Daimler CEO Martin Daum Takes on Finance Role Following the Demise of Jochen Goetz

The tragic loss of Chief Financial Officer Daimler Truck Holding, Jochen Goetz, who died on August 5, 2023, has been a devastating one, whereby the company has been finding it hard to recover from the loss of one of its prominent figures.

Taking a recap of the Daimler first quarter report, according to a news release, the Group continues its growth and further improves profitability, whereas the company records; an increase in unit sales across all segments to 131,888 units (Q2 2022: 120,961).

Significant increase in revenue: $15.1 billion (Q2 2022: $13.1 billion).

Adjusted EBIT significantly increased to $1,552 million (Q2 2022: $1,098 million).

Double-digit profitability: Adjusted return on sales (ROS) of the Industrial Business of 10.3% (Q2 2022: 8.0%).

The statement further elucidates on Daimler Truck Holding AG’s (Daimler Truck) continued path for sustainable growth and profitability, reporting strong second quarter and half-year 2023 results after the Group shared its upgraded full-year guidance in recent time.

In a further release, the Group, in the second quarter of 2023, recorded worldwide unit sales of the Group, which reportedly increased by 9% versus the prior-year quarter, selling a total of 131,888 units (Q2 2022: 120,961).

Martin Daum, CEO of Daimler Truck, said, “Just a few weeks ago, we raised our guidance for 2023, confirmed our ambitions for 2025 and announced an even more ambitious profitability plan for 2030. Today, our strong figures for the first half of this year underscore our positive momentum: Daimler Truck keeps going strong. Our entire team is determined to make 2023 another record year – to benefit our customers, shareholders and employees.”

However, while celebrating the excessive landmark success recorded, it was grit by the tragic loss of Jochen Goetz, leaving the company and its employees dismayed. The many expressions of grief and condolence underline how closely the former CFO of Daimler Truck was associated with the company, its employees and its partners.

“Jochen Goetz was deeply ingrained in the essence of Daimler Truck,” stated Chairman and CEO Martin Daum. “His pivotal contributions have been instrumental in molding Daimler Truck’s current stature. As the CFO, he persistently drove the company towards unparalleled economic achievements.”

Goetz oversaw finance and controlling, procurement of non-production materials and services, and IT management. He joined the board of management on July 12, 2021.

“Jochen Goetz epitomized genuine dedication, passion, and a deep regard for his team,” expressed Joe Kaeser, head of the Daimler Truck Supervisory Board. “We lament the loss of a remarkable leader and individual. Our condolences go out to his family.”

Throughout his impressive 36-year tenure with the Daimler Group, Goetz remained dedicated. He devoted nine years to multiple controlling roles within the Unimog sector of the then Mercedes-Benz AG/Daimler-Benz AG. In 2001, Goetz earned a leadership position at Mercedes-Benz Trucks.

Furthermore, it is worth noting that Daimler Truck Holding must look forward. In this regard, according to a statement released, the Supervisory Board has decided to start the search for a successor for the finance position in the Executive Board, which takes immediate effect.

For this reason, a renowned human resource consulting agency has been appointed. In the meantime,  the Chairman of the Board of Management, Daimler Truck Holding AG, Martin Daum, is expected to assume the function of Chief Financial Officer temporarily.

This temporary appointment will ensure that Daum continues to perform the function of Chairman of the Board of Management more convincingly as before by making internal representative arrangements within the finance department. This temporary solution is expected to be supported by a robust financial organization of the company.

Daimler Truck Holding further Landmark records before the demise of the CFO.

Robust net pricing and an improvement of the after-sales business, supported by solid unit sales of the Group’s revenue, rose significantly by 15% to $15.1 billion (Q2 2022: $13.1 billion). Adjusted Group EBIT increased dramatically by 41% to $1,552 million in the reporting period (Q2 2022: $1,098 million).

In the Industrial Business (IB), adjusted EBIT of $1,481 million was significantly higher (+45%) than in the same period of the previous year (Q2 2022: $1,021 million). At $1,091 million, net profit was slightly above the prior year’s quarter of $1,028 million. With $415 million, the free cash flow of the Industrial Business was significantly above the previous year (Q2 2022: minus $821 million). With 10.3% adjusted ROS of the Industrial Business, Daimler Truck marks its first double-digit profitability (Q2 2022: 8.0%). Earnings per share amounted to $1.21 (Q2 2022: $1.22).

According to Daimler Truck AG media, Jochen Goetz, CFO of Daimler Truck said: “We’ve recorded a strong business performance in the second quarter of 2023 and exceeded market expectations. Daimler Truck achieved a record adjusted return on sales in the Industrial Business of more than 10 per cent for the first time – this is an important milestone proving our commitment to uplift profitability.”

Performance Highlights:

• Overall Growth: Daimler Truck Holding reported strong growth, with unit sales increasing to 131,888 in Q2 2023 from 120,961 in Q2 2022.
• Revenue & Profit: The company’s revenue grew by 15%, reaching $15.1 billion, up from $13.1 billion in Q2 2022. The adjusted EBIT rose by 41%, amounting to $1,552 million, compared to $1,097 million in the previous year.
• Industrial Business: Adjusted EBIT for the Industrial Business was $1,481 million, a 45% rise from Q2 2022’s $1,021 million. The adjusted return on sales (ROS) reached 10.3%, marking the company’s first-ever double-digit profitability.