Mercedes increased profits help offset Trucks earnings slump in Daimler Q3 Results 

• Unit sales 5% above prior-year level at 754,100 vehicles
• Revenue up by 4% to €38.6 billion
• Significant increase in Group EBIT to €4,037 million (Q3 2015: €3,661 million)
• Group EBIT adjusted for special items at highest level to date of €4,010 million (Q3 2015: €3,657 million)
• Net profit of €2,726 million (Q3 2015: €2,415 million)
• Good level of free cash flow of industrial business despite special items
• Slight growth in unit sales and revenue at prior-year’s level anticipated for full-year 2016
• Group EBIT adjusted for special items still expected to be slightly higher than in 2015
• Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars: “Daimler again posted record earnings in the third quarter. We will make the year 2016 into another successful year for Daimler.”
• Bodo Uebber, Member of the Board of Management of Daimler AG for Finance & Controlling and Daimler Financial Services: “We are growing sustainably and profitably. Daimler remains on track to achieve our earnings forecasts for the full year, despite volatile sales and finance markets.”

Daimler AG (ticker symbol DAI) posted record unit sales and EBIT adjusted for special items, thus continuing along its successful path. In the third quarter of 2016, Daimler sold 754,100 cars and commercial vehicles worldwide, more than ever before in a third quarter and surpassing the total for the prior-year period by 5%. In the first nine months of the year, the Group’s unit sales increased by 6% to 2.2 million vehicles. The Daimler Group’s third-quarter revenue amounted to €38.6 billion, which is 4% higher than in the third quarter of 2015. Adjusted for exchange-rate effects, revenue grew by 3%.

The Daimler Group achieved third-quarter EBIT of €4,037 million, thus significantly surpassing its prior-year earnings of €3,661 million. Group EBIT adjusted for special items reached its highest level to date of €4,010 million (Q3 2015: €3,657 million). Net profit improved to €2,726 million (Q3 2015: €2,415 million). Net profit attributable to the shareholders of Daimler AG increased to €2,595 million (Q3 2015: €2,385 million), leading to an increase in earnings per share to €2.43 (Q3 2015: €2.23).

“Daimler again posted record earnings in the third quarter. So we have proven one more time that we are pursuing the right strategy. We will systematically continue along our course,” stated Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. “Our attractive products and innovative services provide us with good momentum. We will use this to utilize the great potential of electric mobility. With our new product brand, EQ, we have established an important basis for leadership also with electric drive systems. But first of all, we will make the year 2016 into another successful year for Daimler.”

The EBIT of the Mercedes-Benz Cars division increased significantly, due in particular to growing unit sales in the SUV segment and the market success of the new E-Class. The Mercedes-Benz Vans division also increased its EBIT significantly, as a result of higher revenue. However, Daimler Trucks and Daimler Buses could not match their high earnings of the prior-year quarter. Among other things, this was caused by sharp decreases in unit sales in some key markets. At Daimler Financial Services, earnings increased significantly primarily due to growth in contract volume. Exchange-rate effects had an overall positive effect on operating profit.

The special items in the third quarters of 2016 and 2015 are shown in the table on page 13.

“Due to our global positioning, our attractive products and above all our highly motivated workforce, we are growing sustainably and profitably. Daimler remains on track to achieve our earnings forecasts for the full year, despite volatile sales and finance markets,” said Bodo Uebber, Member of the Board of Management of Daimler AG for Finance & Controlling and Daimler Financial Services. “With our strong balance sheet, we have a very good basis to invest substantially in the future areas of digitization and electrification. Despite our financial strength, we also have to remain focused and disciplined. One of the great challenges for the automotive industry will be to optimize and prioritize budgets not only for the ongoing business, but for structural technological developments.”

Read the full Q3 Results announcement by Daimler HERE

Source: Daimler AG

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