Daimler's Freightliner is one of the largest truck brands in the world. Image source: Daimler.
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This is bad news for investors in trucking companies PACCAR Inc. and Cummins Inc. . In a surprising move, automotive giant Daimler's truck unit, Daimler Trucks, slashed its outlook some days ago, projecting its 2016 sales and operating profits to be "significantly" lower than 2015. Dr. Wolfgang Bernhard, head of the Daimler Trucks and Daimler Buses divisions, explained why:
Daimler's warnings are hard to ignore as it is the world's largesttruck manufacturer. In fact, going by Daimler's observations about some of the key global truck markets, it appears that immense pressure could be building up on PACCAR's and Cummins' top lines. Click the slideshow below to know more.
The article Daimler Trucks Slashes Outlook: Why Cummins Inc. and PACCAR Inc. Need to Worry originally appeared on Fool.com.
Neha Chamaria has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Cummins and PACCAR. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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