Daimler AG (ticker symbol DAI) started the year in a challenging economic environment with stable revenue and moderate earnings in the first quarter. The Group’s total unit sales decreased by 4% to 773,800 passenger cars and commercial vehicles. Revenue amounted to €39.7 billion (Q1 2018: €39.8 billion). Also adjusted for positive exchange-rate changes, revenue remained at the prior-year level.
The Daimler Group achieved first-quarter EBIT of €2,802 million, well below the prior-year figure of €3,335 million. Net profit weakened only slightly to €2,149 million (Q1 2018: €2,354 million). Net profit attributable to the shareholders of Daimler AG amounted to €2,095 million (Q1 2018: €2,273 million), leading to a decline in earnings per share to €1.96 (Q1 2018: €2.12).
Earnings at all the automotive divisions decreased significantly compared with the first quarter of last year, while Daimler Financial Services benefited from a positive valuation effect. Earnings at Mercedes-Benz Cars were lower than in the prior-year quarter, due in particular to lower unit sales and changes in the sales structure. There was a negative impact on earnings at Daimler Trucks from additional costs, mainly resulting from higher raw-material prices and supply-chain bottlenecks. Mercedes-Benz Vans and Daimler Buses posted negative earnings. At the van division, expenses in connection with the adjustment of production capacities as well as upfront expenditure for new technologies and products resulted in a loss for the period. At Daimler Buses, delivery delays due to a changed internal certification process for coaches and intercity buses had a negative impact. On the other hand, Daimler Financial Services’ EBIT increased substantially in the first quarter. This was mainly due to the merger of the mobility services of Daimler and the BMW Group, which had a positive effect on earnings of €718 million.
“We cannot and will not be satisfied with this – as expected – moderate start to the year. We now have to work hard to achieve our targets for 2019. Based on our sales planning and the countermeasures we have already initiated, we are confident that we will achieve those targets. In the first few months of this year, we have consistently implemented further elements of our strategy and initiated several important projects: our cooperation at smart with Geely, the development of a joint platform for autonomous driving, and the merger of the mobility services with those of the BMW Group,” said Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars.
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SOURCE: Daimler
