Nov 7 (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)