Earnings of German Automaker Daimler plummets by nearly 80% in Q1 2020

Must Read

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -

As a result of the COVID-19 pandemic, market expectations for Daimler’s first-quarter 2020 appear to show a large degree of variation. Against this background Daimler announces the following:

Preliminary figures for the first quarter of 2020 are in line with our earlier communicated trend:

  • Daimler Group EBIT: 617mn EUR (Q1-19: 2,798mn EUR);
    adjusted EBIT 719mn EUR (Q1-19: 2,310mn EUR)
    Trend as communicated: margin positive
  • Mercedes-Benz Cars & Vans EBIT: 510mn EUR (Q1-19: 1,143mn EUR);
    adjusted EBIT:603mn EUR (Q1-19: 1,372mn EUR)
    Trend as communicated: margin positive
  • Daimler Trucks & Buses EBIT: 247mn EUR (Q1-19: 553mn EUR);
    adjusted EBIT: 247mn EUR (Q1-19: 553mn EUR)
    Trend as communicated: margin positive
  • Daimler Mobility EBIT: 58mn EUR (Q1-19: 1,209mn EUR);
    adjusted EBIT: 58mn EUR (including COVID-19 related provisions for credit risks of 0,4 bn EUR) (Q1-19: 491mn EUR)
    Trend as communicated: pre-credit risk provisions margin positive
  • Net industrial liquidity: 9.3bn EUR (Q1-19: 11.0bn EUR)
    Trend as communicated: comfortable level
  • Industrial Free Cash Flow: minus 2.3bn EUR (Q1-19: minus 2.0bn. EUR);
    adjusted Industrial Free Cash Flow: minus 1.9bn EUR (Q1-19: minus 2,0bn EUR) Trend as communicated: negative

The following two effects that are included in today’s’ preliminary figures do not appear to be reflected in current market expectations:

  • Mercedes-Benz Cars & Vans: Contribution of smart into the joint venture with Geely leading to a positive effect of +154mn EUR

Earnings of German Automaker Daimler plummets by nearly 80% in Q1 2020 - Brand Spur
Mercedes-Benz A-Class Sedan, Iridium silver, Interior: AMG Line black, Artico / dinamica microfibre black

  • Reconciliation: Impairment on our shareholding in BAIC Motor Corporation Ltd: minus 150mn EUR
- Advertisement -

All stated figures are preliminary and unaudited.

Given the continuing effects of the COVID-19 pandemic, Daimler’s Board of Management, as already disclosed in our ad-hoc-announcement on March 17, 2020, continues to believe that the original forecast for the financial year 2020, as disclosed in connection with annual report 2019, is no longer valid.

Read Also:  Best Sales Result In The Past Decade: Daimler Trucks Sells Well Over 500,000 Trucks In 2018

The effect of the COVID-19 pandemic on customer demand, supply chains, and vehicle production cannot be assessed with the usual degree of detail and certainty, making the re-evaluation of the forecast for the fiscal year 2020 complex. However, we do now expect the Group’s total unit sales for 2020 to be below the prior year, with lower unit sales at each of Mercedes-Benz Cars, Mercedes-Benz Vans, Daimler Trucks and Daimler Buses. For Daimler Mobility we expect for the financial year 2020 a lower new business volume than in 2019.

As a result, we expect the group revenue for the financial year 2020 to be below the prior year.

- Advertisement -

Given the anticipated market development and the assessment of our divisions, we expect the group EBIT for the financial year 2020 to be below the prior year.

The adjusted return on equity of Daimler Mobility for the financial year 2020 will not reach the prior-year level.

The decline in the results will lead to a decline in our Industrial Free Cash Flow for 2020.

Read Also:  Mercedes-Benz delivers approximately 477,400 cars worldwide in Q1 2020

Having implemented a comprehensive set of cash protection measures and having increased our financial flexibility, we are confident that we are well-positioned to manage the business, both during and after the COVID-19 pandemic.

- Advertisement -

The full quarterly results will be published on April 29, 2020. We will give further information on the current situation and how we are managing it on this day.
EBIT, adjusted EBIT and adjusted Return on Sales/Return on Equity are defined on pp. 64, 73 and 342 of the Daimler Annual Report 2019.

- Advertisement -
Earnings of German Automaker Daimler plummets by nearly 80% in Q1 2020 - Brand SpurEarnings of German Automaker Daimler plummets by nearly 80% in Q1 2020 - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Earnings of German Automaker Daimler plummets by nearly 80% in Q1 2020 - Brand SpurEarnings of German Automaker Daimler plummets by nearly 80% in Q1 2020 - Brand Spur

Latest News

Global Digital Advertising Spending to Jump 14% YoY and Hit $395B in 2021

Although the COVID-19 pandemic slowed the growth of digital advertising, online ads are still expected to increase their market...

Xiaomi shares slide despite positive third-quarter performance

Xiaomi shares slid 3.7% today in Hong Kong to HK$26.15, despite the phone maker’s positive financial and operating performance during the third quarter of the year. The...

Pandemic winners: HP and Dell report better than expected earnings

Both HP and Dell reported their earnings after the close of markets yesterday. The earnings were better than expected as the work-from-home trend lifted...

Manchester City 2020-2021 Squad Most Expensive Out of Top 5 Leagues

Football transfer fees have exploded over the last two decades with some of the top clubs not afraid to spend more than €100M for...

InfraCredit to Raise Fresh Capital

The Infrastructure Credit Guarantee Company (InfraCredit) has revealed plan to raise additional capital to fund critical projects in Nigeria. The unit of the Nigeria Sovereign...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Earnings of German Automaker Daimler plummets by nearly 80% in Q1 2020 - Brand SpurEarnings of German Automaker Daimler plummets by nearly 80% in Q1 2020 - Brand Spur