The commercial vehicle manufacturer Daimler Truck has completely written off the carrying amount of its joint venture BFDA in China due to the ongoing weak market development there. This non-cash charge amounts to 120 million euros, as the company announced on Tuesday evening.

Due to this write-down, the adjusted return on sales (RoS) for the industrial business in the second quarter is reduced from the original 10.2 percent to 9.3 percent. Analysts had, on average, expected 9.6 percent.

The other published key figures were also below expectations. The result before interest and taxes (Ebit) amounted to 1.076 billion euros company-wide, while analysts had expected 1.253 billion euros. In the industrial business, Daimler Truck achieved an adjusted Ebit of 1.156 billion euros, compared to a consensus expectation of 1.205 billion euros.

The company is currently reviewing its outlook for the full year.

The reactions of investors to the overall package of news were negative. In after-hours Tradegate trading, the Daimler Truck share temporarily dropped by 3.37 percent to 36.70 euros.