Daimler Truck targets 3-5% organic sales growth in industrial business through 2030

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(Corrects paragraph 3-4 to say 20% reduction in German headcount refers to the headquarters and G&A functions (not the whole group). Corrects total headcount reduction in Germany to 14%)

(Reuters) -Daimler Truck on Tuesday projected yearly organic revenue growth of 3% to 5% until 2030 in its industrial business, driven by a service push, a shift to zero-emission vehicles in Europe, vocational trucks in North America, and growth in India and the defence sector.

The company, one of the world’s biggest truckmakers, also targets an adjusted return on sales of more than 12% in the industrial business through 2030, it said in a statement ahead of its capital markets day event in Charlotte, North Carolina.

As a part of the European cost cutting programme first announced in March, Daimler Truck said it planned to shift its production volume to a best-cost country, which alongside other measures would lead to a reduction of around 5,000 jobs in Germany by 2030, representing 14% of the total German headcount.

The plan includes a 20% headcount reduction in the headquarters and G&A functions in Germany, which is expected to lead to savings of 100 million euros ($117.15 million) in central and administrative costs by 2030.

The company said it would use natural attrition and expanded early retirement options to reduce positions in a socially responsible manner.

Its shares reversed course to fall 3.5% as of 1158 GMT, after rising 1.6% earlier in the session on the 2 billion euro share buyback programme announced on Monday.

($1 = 0.8536 euros)

(Reporting by Amir Orusov in Gdansk; editing by Milla Nissi-Prussak)