UPDATE 2-Daimler Truck hit by US tariffs and weak North American demand

Writes through, adding detail, background and trader comment

North American arm's profit margin drops to 5.4% from 14.4%

Full-year guidance confirmed

Order momentum suggests U.S. market recovery

By Amir Orusov

- Daimler Truck's DTGGe.DE first-quarter operating profit more than halved, hit by historically weak demand and import tariffs in its North American market, the German company said on Wednesday.

The performance reflected a sharp slowdown in North America, where sales fell by a quarter to 29,432 vehicles in an autos sector dealt a hefty blow by import tariffs imposed by U.S. President Donald Trump's administration.

The Trucks North America division continues to face "tariff headwinds, with full tariff effects" reflected in the first quarter for the first time, group finance chief Eva Scherer said in a statement.

On a group level, adjusted operating profit was 498 million euros ($583.56 million), down from 1.08 billion euros a year earlier.

The sales decline, import tariffs and adverse currency effects cost the North American arm 624 million euros in the quarter, the group said in presentation slides.

Adjusted return on sales in North America fell to 5.4% from 14.4% in the same period last year.

However, Daimler Truck confirmed its full-year outlook, saying it saw early signs of potential demand recovery in the U.S. truck market with an 86% increase in North American orders.

The upturn in orders was "far better than hoped", a Frankfurt-based equities trader said, and chimed with reports from rivals Traton 8TRA.DE and Volvo VOLVb.ST.

($1 = 0.8534 euros)