Home Altro Varie DAIMLER RAISES MARGIN TARGETS BASED ON STRONG FIRST QUARTER PERFORMANCE

DAIMLER RAISES MARGIN TARGETS BASED ON STRONG FIRST QUARTER PERFORMANCE

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Daimler AG (ticker symbol: DAI) today reported its results for the first quarter ended March 31, 2021 and raised its outlook for the full year. The Group’s total unit sales increased by 13% to 728,600 cars and commercial vehicles (Q1 2020: 644,300) due to the recovery of the global economy combined with an attractive vehicle portfolio. Revenue rose to €41.0 billion (Q1 2020: €37.2 billion) supported by favourable product mix and pricing. The strong operating #performance in the first-quarter translated into an EBIT bounce to €5,748 million (Q1 2020: €617 million). Adjusted EBIT, reflecting the underlying business, also multiplied to €4,970 million (Q1 2020: €719 million).

Harald Wilhelm, Chief Financial Officer of #daimler AG: “Deliveries, revenues and profits increased significantly, particularly thanks to tailwinds in China, a strong product mix and favourable pricing, supported by industrial #performance enhancements and cost control. After this promising start, we are very confident that we can keep up the pace to improve our margins on a sustainable basis and at the same time expand our electric vehicle line-up.”In the first quarter of 2021, net profit was €4,373 million (Q1 2020: €168 million). Net profit attributable to the shareholders of #daimler AG amounted to €4,290 million (Q1 2020: €94 million), leading to an increase in earnings per share to €4.01 (Q1 2020: €0.09).Investments, free cash flow and liquidityThe Group’s investments in property, plant and equipment in the first quarter totaled €1.2 billion (Q1 2020: €1.3 billion). Research and development expenditure amounted to €2.4 billion (Q1 2020: €2.4 billion). The free cash flow of the industrial business was an inflow of €1.8 billion (Q1 2020: outflow of €2.3 billion), including important upfront investments in future products.

This turnaround was triggered by a strong operating #performance, focused capital allocation as well as effective working-capital measures. The adjusted free cash flow of the industrial business rebounded to €2.8 billion (Q1 2020: outflow of €1.9 billion). The net liquidity of the industrial business increased to €20.1 billion at the end of the first quarter, compared to €17.9 billion at year-end 2020. This is mainly a result of the strong free cash flow from the industrial business.Divisional resultsSales by the Mercedes-Benz Cars & Vans division increased by 15% to 627,300 vehicles in the first quarter (Q1 2020: 546,700). Revenue was €26.9 billion (Q1 2020: €23.2 billion). EBIT amounted to €4,078 million (Q1 2020: €510 million) and the return on sales was 15.2% (Q1 2020: 2.2%). Adjusted EBIT reached €3,841 million (Q1 2020: €603 million) with the adjusted return on sales at 14.3% (Q1 2020: 2.6%). Cash flow before interest and taxes (CFBIT) was an inflow of €1,968 million (Q1 2020: outflow of €1,729 million). Adjusted CFBIT amounted to an inflow of €3,129 million (Q1 2020: outflow of €1,281 million).

The adjusted cash conversion rate (CCR) was plus 0.8 (Q1 2020: minus 2.1).Sales by Mercedes-Benz Cars rose by 15% to 538,900 vehicles in the first quarter (Q1 2020: 470,600). Mercedes-Benz Vans’ sales were up 16% to 88,400 vehicles (Q1 2020: 76,200).The #daimler Trucks & Buses division showed an increase in unit sales of 4% to 101,300 vehicles in the first quarter (Q1 2020: 97,600). Revenue was €8.7 billion (Q1 2020: €8.7 billion). EBIT amounted to €1,041 million (Q1 2020: €247 million) and the return on sales was 12.0% (Q1 2020: 2.8%). Adjusted EBIT was €518 million (Q1 2020: €247 million) and adjusted return on sales was 6.0% (Q1 2020: 2.8%). Cash flow before interest and taxes (CFBIT) soared to an inflow of €621 million (Q1 2020: outflow of €85 million). Adjusted CFBIT amounted to an inflow of €435 million (Q1 2020: outflow of €85 million). The adjusted cash conversion rate (CCR) was plus 0.8 (Q1 2020: minus 0.3).Unit sales by #daimler Trucks increased by 6% to 97,600 vehicles in the first quarter (Q1 2020: 92,500). #daimler Buses sold 3,700 vehicles, a decrease of 27% (Q1 2020: 5,100).At #daimler Mobility, new business increased by 4% to €16.8 billion in the first quarter (Q1 2020: €16.2 billion), driven by strong sales developments at the industrial business. Contract volume was €152.7 billion at the end of the quarter (end of 2020: €150.6 billion). Revenue was €7.0 billion (Q1 2020: €7.1 billion). The division’s EBIT amounted to €744 million (Q1 2020: €58 million). At 20.2%, return on equity was much higher than the 1.6% in the prior-year period. Adjusted EBIT was €691 million (Q1 2020: €58 million) and adjusted return on equity was 18.7% (Q1 2020: 1.6%).