(Reuters) -Daimler Truck reported a bigger-than-expected 40% drop in third-quarter operating profit on Friday, but stuck to its annual forecasts on the back of a positive momentum in Europe and a recovery in North America.

Adjusted earnings before interest and taxes (EBIT) came in at 716 million euros ($835.00 million) for the quarter, missing the 729 million euros expected in a company-compiled consensus.

Incoming orders of 93,923 units were at the previous year's level, backed by a positive momentum in Europe and a recovery in North America from very low levels in the second quarter, the company said in a statement.

European truck manufacturers were facing declining demand in North America due to weaker freight activity and market uncertainty caused by import tariffs.

Daimler Truck's Trucks North America segment saw a 64% drop in operating profit to 257 million euros, but beat consensus expectations of 240 million euros.

However, its Mercedes-Benz Trucks business achieved adjusted EBIT of 319 million euros, missing consensus expectations of 329 million.

($1 = 0.8575 euros)

(Reporting by Amir Orusov and Simon Ferdinand Eibach; Editing by Subhranshu Sahu)