Daimler performance resilient in third quarter

Daimler performance resilient in third quarter

30.10.2021:


    Unit sales at Mercedes-Benz Cars & Vans decreased due to semiconductor shortage


    Group revenue of €40.1 billion (Q3 2020: €40.3 billion) at prior-year level


    EBIT of €3,579 million (Q3 2020: €3,070 million)


    Industrial free cash flow of €2,249 million (Q3 2020: €5,139 million)


    Net industrial liquidity of €23.5 billion (end of Q2 2021: €20.9 billion)


    Group net profit of €2,573 million (Q3 2020: €2,158 million)


    Outlook for fiscal year 2021 (Daimler Trucks & Buses included for 12 months): Group EBIT to be significantly above the prior-year level. Free cash flow of the industrial business is now expected to be at the prior-year level




Daimler AG‘s (ticker symbol: DAI) business performance demonstrated resilience in the third quarter ending September 30, 2021. Despite considerably lower production and sales due to the semiconductor shortage, revenue remained at the prior-year level.



Group EBIT increased thanks to improved product mix, revenue quality and a tight grip on fixed costs. Demand for all products remains strong in all markets as the world’s pre-eminent luxury brand continues its global rollout of electric-only vehicles.



Total unit sales decreased by 25% to 577,800 passenger cars and commercial vehicles (Q3 2020: 772,700) mainly due to the global supply constraints. Group revenue remained at €40.1 billion (Q3 2020: €40.3 billion). The share from discontinued operations was €8.4 billion (Q3 2020: €8.7 billion).




Group EBIT was €3,579 million (Q3 2020: €3,070 million). The share from discontinued operations was €680 million (Q3 2020: €559 million). Adjusted EBIT, reflecting the underlying business, was €3,611 million (Q3 2020: €3,479 million). Group net profit was €2,573 million (Q3 2020: €2,158 million). The share from discontinued operations was €549 million (Q3 2020: €347 million).




“We remain on track to meet our full-year targets thanks to a more robust business – resulting in an EBIT increase despite a challenging environment,” stated Harald Wilhelm, Chief Financial Officer of Daimler AG. “At the same time, we made substantial progress with our strategic agenda: continuing the rollout of highly desirable electric vehicles, laying the groundwork for scaled up battery cell production with our intended stake in ACC, and through gaining shareholder approval for creating two pure-play companies.”



On July 30, 2021, the Board of Management of Daimler AG, with the approval of the Supervisory Board, resolved to spin off the former Daimler Trucks & Buses division, including the associated financial services business (Daimler Commercial Vehicles business). At the Extraordinary General Meeting on October 1, 2021, the shareholders of Daimler AG approved the spin-off with 99.9% of the represented share capital.



As a result, the criteria for classification as discontinued operations and as assets and liabilities held for distribution or sale, have been met. Group figures within financial statements have been split into continued and discontinued operations. Continued operations are presented in the consolidated income statement; the result of the discontinued operations after taxes is shown in a separate line. The previous year's figures have been adjusted accordingly.






Investments, free cash flow and liquidity



A tight grip on fixed costs, working capital and investment translated into a comfortable level of free cash flow. The free cash flow of the industrial business was €2,249 million (Q3 2020: €5,139 million), including important upfront investments in future products. The adjusted free cash flow of the industrial business was €2,833 million (Q3 2020: €5,345 million).



The net liquidity of the industrial business amounted to €23.5 billion at the end of the third quarter, compared with €20.9 billion at the end of the second quarter 2021 and €17.9 billion at year-end 2020. The Group’s investments in property, plant and equipment in the third quarter totaled €1,106 million (Q3 2020: €1,193 million). Research & development expenditure amounted to €2,212 million (Q3 2020: €2,126 million).





Divisional results



Sales at the Mercedes-Benz Cars & Vans division decreased by 30% to 471,400 vehicles in the third quarter (Q3 2020: 673,400). High-end vehicles including Mercedes-Maybach, Mercedes-AMG, the S-Class and G-Class as well as the GLE and GLS showed strong growth, with favourable mix and net pricing helping to partially offset semiconductor-driven supply constraints and raw material headwinds.



Revenue was €25.6 billion (Q3 2020: €25.8 billion). EBIT amounted to €2,004 million (Q3 2020: €2,118 million) and the return on sales was 7.8% (Q3 2020: 8.2%). Adjusted EBIT reached €2,175 million (Q3 2020: €2,417 million) with the adjusted return on sales at 8.5% (Q3 2020: 9.4%). Cash flow before interest and taxes (CFBIT) was €3,652 million (Q3 2020: €4,617 million). Adjusted CFBIT amounted to €4,127 million (Q3 2020: €4,821 million). The adjusted cash conversion rate (CCR) was 1.9 (Q3 2020: 2.0).


Sales at Mercedes-Benz Cars declined by 32% to 383,500 vehicles in the third quarter (Q3 2020: 566,600). The presentation of four new electric concepts and vehicles at the Munich IAA underlined the brand’s unrelenting focus on luxury and tech in the area of passenger cars.



Mercedes-Benz Vans’ sales decreased by 18% to 88,000 vehicles (Q3 2020: 106,900). In the Vans segment, Mercedes-Benz introduced its new Citan and eCitan, launched a new battery variant for its eVito Tourer and started sales of its Sprinter 4x4.



For Daimler Trucks & Buses the third quarter was also a challenging one. The division’s operations and financial performance were impacted by supply chain constraints, mainly shortages of semiconductors, affecting especially the heavy duty segment. The division showed an increase in unit sales of 7% to 106,400 vehicles in the third quarter (Q3 2020: 99,300). Revenue was €8.9 billion (Q3 2020: €9.2 billion). EBIT amounted to €482 million (Q3 2020: €541 million) and the return on sales was 5.4% (Q3 2020: 5.9%).



Adjusted EBIT was €489 million (Q3 2020: €603 million) and adjusted return on sales was 5.5% (Q3 2020: 6.5%). Cash flow before interest and taxes (CFBIT) showed an outflow of €576 million (Q3 2020: inflow of €1,142 million). Adjusted CFBIT amounted to an outflow of €527 million (Q3 2020: inflow of €1,142 million). The adjusted cash conversion rate (CCR) was minus 1.1 (Q3 2020: 1.9).



Unit sales at Daimler Trucks increased by 8% to 101,700 vehicles in the third quarter (Q3 2020: 94,100). Headwinds from raw materials were partially offset through increased net pricing. The North America order book for 2022 showed record incoming orders. Daimler Buses sold 4,700 vehicles, a decrease of 8% (Q3 2020: 5,100).



At Daimler Mobility, new business decreased by 22% to €14.6 billion in the third quarter (Q3 2020: €18.7 billion) due to the semiconductor related lower sales level. Contract volume was €148.1 billion at the end of the quarter (end of the second quarter 2021: €150.6 billion / end of 2020: €150.6 billion).



Revenue was €6.9 billion (Q3 2020: €6.9 billion). The division’s EBIT amounted to €943 million (Q3 2020: €589 million). At 23.3%, return on equity was much higher than the 16.2% in the prior-year period. Adjusted EBIT was €943 million (Q3 2020: €601 million) and adjusted return on equity was 23.3% (Q3 2020: 16.5%).



The financial performance of the division strongly benefitted from lower refinancing costs and the strong credit quality of the portfolio. Daimler Mobility is expanding its offering of support for EV sales but these remain at a level equivalent to ICE vehicles.





Outlook for Daimler and the divisions


The economic conditions for worldwide demand for cars are likely to remain favourable during the rest of the year. It remains difficult to deliver an accurate forecast on how the supply situation will continue to develop. Daimler assumes that strained supply chains and bottlenecks for key components will continue to have a considerable impact on worldwide vehicle production also in the fourth quarter of the year.



Daimler assumes in the fourth quarter an improved semiconductor supply situation compared with Q3, despite limited visibility and high volatility. The overriding structural shortage of semiconductors is expected to remain an issue in 2022 but should improve compared to 2021.




Based on the divisions’ current assessments, Daimler now expects Group revenues and Group EBIT in full-year to be significantly above the level of the previous year. Daimler assumes that the worldwide semiconductor shortage will affect Mercedes-Benz Cars and Mercedes-Benz Vans unit sales in the fourth quarter. Mercedes-Benz Cars now anticipates slightly lower unit sales in the full-year 2021 than in the previous year.



Mercedes-Benz Vans now expects its unit sales in 2021 to be at the prior-year level. Following the drop in demand in 2020, major truck markets are expected to recover in 2021, which should also benefit the sales of Daimler Trucks & Buses. The division continues to anticipate a significant increase in unit sales, mainly reflecting the expectations for the markets in North America, Indonesia and the EU region.




Based on the performance in the first nine month of the year and the above mentioned assumptions, the divisions expect the following adjusted returns in the year 2021:





    Mercedes-Benz Cars & Vans: adjusted return on sales of 10 - 12% (unchanged)

    Daimler Trucks & Buses: adjusted return on sales of 6 - 8% (unchanged, excluding effects from the spin-off)

    Daimler Mobility: adjusted return on equity of 20 - 22% (previously: 17 - 19%)




The calculation of the adjusted return on equity of the Daimler Mobility division does not include any impact on division EBIT from the deconsolidation of parts of the financial services business.



The adjusted cash conversion rate (ratio of cash flow to EBIT) for the Mercedes-Benz Cars & Vans division is now expected to be between 0.8 and 1.0 in 2021 (previously: 0.7 and 0.9). For Daimler Trucks & Buses, the adjusted cash conversion rate for full-year 2021 is also likely to be between 0.8 and 1.0 (unchanged, excluding effects from the spin-off).



Investments in property, plant and equipment in 2021 on a group level are expected to be slightly below the magnitude of the previous year (previously: in the magnitude of previous year); research & development investments on a group level are expected to be slightly (previously: significantly) above the prior year’s level.



Daimler now expects the free cash flow of the industrial business for 2021 to be at the prior-year level, excluding spin-off effects from Trucks & Buses (previously: slightly below 2020's figure). This includes payments agreed in the third quarter of 2020 in the context of the settlement with the US-regulators and plaintiff representatives of the consumer class actions relating to diesel emissions, cash-outs due to the restructuring program, higher cash taxes than in 2020, as well as costs related to the planned spin-off of Daimler Truck.




 Daimler also logo

Permanent-URL: http://www.automobilsport.com/daimler-performance-resilient-third-quarter---230552.html

30.10.2021 / MaP

More News

Audi Group makes healthy profit despite semi-conductor crisis- forecast for 2021 adjusted
30.10.2021
   After nine months: 1.3 million Audi brand vehicles delivered, revenue €40.4 billion, operating profit of €3.9 billion and operating return on sales of 9.5 percent        Net cash flow strong at €7.9 billio more >>
Automobili Lamborghini sets another record result for deliveries in the first nine months of 2021
21.10.2021
Strong order book continues with demand across the product portfolioAutomobili Lamborghini announces further record sales for the first nine months of 2021. The period between January and September has seen the company achieve a record 6,902 unit more >>
Tesla Leapfrogs the Competition in Interbrand's 2021 Best Global Brands Report
21.10.2021
Sephora Enters the Table, While Tech Companies Continue to Dominate the Top Spots- Tesla (#14) makes the biggest leap up the table and is the fastest growing brand of the past year with an unprecedented 184% increase in brand value after re-entering the rankings in 2020. more >>
Record third quarter for Ducati
20.10.2021
... which leads to already higher deliveries in the first nine months of 2021 than entire 2020 An extremely positive third quarter has ended for Ducati with 49,693 motorcycles delivered to enthusiasts all over t more >>
Toyota Motor Europe market share climbs to a record 6.7% in first 9 months
13.10.2021
    Toyota Motor Europe’s (TME) sales growth continued with 864,904 vehicles sold in the first 9 months, increasing its market share to a record 6.7%, up by +0.6 pts year-on-year    Record customer demand for hybrid electric line-up, which now represents 59% of total European sales    Low-emission, mu more >>
Sensational September sees MG Motor UK buck industry trends and set several new records
06.10.2021
    MG Motor UK achieves highest ever monthly sales in the UK, passing 5,000 registrations for the first time ever    Record 2.53% market share sees sales up 61.2% year-to-date    MG also achieves 5.5% battery electric share, with the highest EV mix of any brand selling both Internal Combustion Engine more >>
Mitsubishi Motors Announces Production, Sales and Export Figures for August 2021
29.09.2021
August 2021     Fiscal Year 2020 (21/04-21/08)     Calendar Year 2021 (21/01-21/08) Volume     YoY(%)     Volume     YoY(%)     Volume    more >>
Premium Ebike Subscription Company Dance Raises 16.5 Million To Encourage Sustainable Cities Around the World
28.09.2021
Eurazeo alongside key angel investors focused on sustainable investments looks to scale its services and software Today, premium ebike subscription company Dance raised an additional €16.5 million as the company rolls out its first generation ebike and repair more >>
CAKE closes $60 million fundraising
28.09.2021
Scaling from successful global start-up towards vehicle industry operator.  CAKE, the Swedish manufacturer of lightweight electric performance motorcycles, scooters and mopeds today announces that CAKE’s latest round of fundraising s more >>
Goodyear announces offering of 300 million European senior notes
20.09.2021
The Goodyear Tire & Rubber Company (“Goodyear”) today announced that its European subsidiary, Goodyear Europe B.V. (“GEBV”), has commenced a private offering to eligible purchasers of €300 million aggregate principal amount of senior notes due 2028. more >>
Toyota eyes leadership in EV battery technology over next decade with announced investments, says GlobalData
13.09.2021
Following the news that Japanese automaker Toyota plans to spend U$13.5bn to develop electric vehicle (EV) battery technology and supply system by 2030; Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, off more >>
German Electric Vehicle Manufacturer, Next.e.GO, successfully closes $ 57 M Series C funding round
26.08.2021
Next.e.GO Mobile SE, the German Electric Vehicle manufacturer company producing affordable, purpose-built and sustainable urban electric vehicles based on its disruptive technologies and unique microfactory, announced today that its majority shareholder, nd Industrial Investments B.V., part of international private equity company nd Group B.V. has successfully closed a series C equity funding r more >>
Business venture restructuring in China to help Mazda Motor to improve competitive position, says GlobalData
26.08.2021
Following the news that Japanese automaker Mazda Motor Corp has agreed to restructure car joint venture (JV) with Chinese partners Changan and FAW;  Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, more >>
Capacity expansion investment to boost MG Motor competitive position in India, says GlobalData
25.08.2021
Following the news that automaker MG Motor plans to invest INR25bn (US$340m) in India by 2022 end;  Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers his view:  “A more >>
Hagerty and Aldel Financial Announce Merger Agreement for Hagerty to Become a Publicly Traded Company
19.08.2021
Specialty automotive insurance provider offers investors high-growth trajectory, scalable membership model, a leading automotive lifestyle brand and a unique value proposition targeting the expansive and growing automotive enthusiast m more >>
Goodyear Ventures invests in EV charging and software company Ampup
17.08.2021
Goodyear announced  that its venture capital arm, Goodyear Ventures, has added AmpUp, a leader in electric vehicle (EV) charging, to its investment portfolio.AmpUp supports the EV driving comm more >>
Intelligent Systems - Tech Helps GAC Jump to 176th on the Fortune 500
13.08.2021
For almost 25 years, GAC has strengthened independent innovation on the basis of joint ventures and cooperation, as well as through extensively funding of the GAC R&D Centers. This investment in technology has yielded great results: as of August 2, 2021, GAC had jumped 30 places up on the Fortune 500 list to 176th.  more >>
Geely will bolster Renault presence in China, says GlobalData
10.08.2021
Following the news that Geely Holding Group and Renault Group have agreed to form a hybrid vehicle joint venture with focus on China and South Korea markets;   Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading more >>
Goodyear reports second quarter, first half 2021 results
06.08.2021
– Second quarter Goodyear net income of $67 million; adjusted net income of $79 million– Second quarter merger-adjusted segment operating income of $349 million– Global consumer replacement volume continued to exceed industry, driven by large-rim diameter volume– Global consumer OE volume outpaced market, with more >>
BMW Group boosts profitability and earnings in second quarter despite semiconductor shortage
03.08.2021
The BMW Group continued performing dynamically in the second quarter, setting new record figures for sales, earnings and net profit. Demand for the Group’s premium vehicles has remained strong, with continued good pricing.   more >>
Kia announces July 2021 global sales
02.08.2021
    July global sales at 241,399 units, up 8.7% y/y    Sales in Korea at 48,160 units, up 2.4% y/y    Sales outside of Korea rose to 193,239 units, up 10.4% y/y    Kia to maintain sales momentum through competitive vehicles including the EV6 battery electric vehicle and all-new Sportage more >>
Volkswagen posts a strong first half
31.07.2021
Volkswagen Passenger Cars brand sees a marked increase in deliveries, sales revenue and earnings in the first half of 2021 despite considerable challenges     Sales revenue of EUR 40.7 billion, operating profit of EUR 1.8 billion, operating net more >>
Renault Group is ahead of its "Renaulution" plan
30.07.2021
    Renault Group should achieve its target of €2 billion cash fixed cost reductions one year ahead of schedule: €1.8 billion have already been achieved of which €0.6 billion during this first half compared to 2019.    Strong positive net price effect (+8.7 points on the Automotive excluding AVTOVAZ revenues), reflecting the more >>
Porsche more than doubles operating result
30.07.2021
Half-year report: 16.53 billion euros sales revenue and 16.9 percent return on sales   Significant boost in the first six months: in the first half of 2021, Porsche achieved sales revenues of 16.53 billion euros and an operati more >>
Successful first half-year for Audi: record deliveries and strong profits
30.07.2021
   Record deliveries: the best first half-year in Audi’s history with 981,681 vehicles delivered to customers         Revenue totals €29.2 billion, operating profit €3.1 billion, operating retur more >>
Mitsubishi Motors Announces Production, Sales and Export Figures for June 2021 and First Half of Calendar Year 2021
29.07.2021
June 2021     Fiscal Year 2020 (21/04-21/06)     Calendar Year 2021 (21/01-21/06) Volume     YoY(%)     Volume     YoY(%)     Volume     YoY(%) Production more >>
Volvo Cars reports record six-month performance in H1 2021
24.07.2021
    Revenue of MSEK 141,131 (111,759), +26.3%    Operating income increased to MSEK 13,238 (-989)    EBIT margin of 9.4% (-0.9%)    Basic earnings per share of SEK 163.63 (-35.99)    Retail sales up 41.0%, resulting in approximately 775,000 cars sold for the p more >>
Volvo Cars to take full ownership of its Chinese manufacturing and sales operations
22.07.2021
Volvo Cars has signed an agreement with its parent, Geely Holding, to acquire Geely Holding’s stake in the companies’ joint ventures in China, with the aim of taking full ownership of its car manufacturing plants and sales operations in the country. more >>
BMW Group posts strong sales for first half-year
08.07.2021
On course for solid, profitable sales growth in 2021.BMW Group sales +39.1 percent higher year-on-year; 1,339,080 vehicles sold in first six months   - Sales up +7.1 percent from pre-crisis year 2019 - Sales more >>
McLaren Automotive appoints George Biggs as Commercial Executive Director
01.07.2021
Luxury supercar maker McLaren Automotive today announces the appointment of George Biggs to the role of Commercial Executive Director, effective 1 July.George assumes responsibility for global sales more >>
BMW i Ventures Announces New $300 Million Venture Capital Fund
01.07.2021
... to Further Invest in Sustainability, Transportation, Manufacturing and Supply ChainBMW i Ventures announced  the creation of a new $300 million venture capital fund with a strong focus on sustainability. The new fund will invest in early to mid-stage start-ups ope more >>
Mitsubishi Motors Announces Production, Sales and Export Figures for May 2021
29.06.2021
May 2021     Fiscal Year 2020 (21/04-21/05)     Calendar Year 2021 (21/01-21/05) Volume(unit)     YoY(%)     Volume(unit)     YoY(%)     Volume(unit)     YoY(%) more >>
Volkswagen Group secures second highest monthly market share in Europe since 2001
29.06.2021
    European new car registrations increased last month compared to May 2020, but still far from pre pandemic levels    Volkswagen Group gained traction thanks to SUV and new EV offerings more >>
Uber partnership to help Kia strengthen EV share in Europe, says GlobalData
18.06.2021
Following the news that South Korean automaker Kia has partnered with shared mobility giant Uber to supply electric vehicles (EVs) in Europe; Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers his view: more >>
Volkswagen invests a further 500 million in sustainable battery activities with Northvolt AB
11.06.2021
    Group participates in financing round with a total of US$2.75 billion and continues to hold about 20 percent of the shares in the Swedish cell producer    Funds to be used for capacity expansion in production, recycling and research and development    Arno Antlitz, Group Board Member for Finance a more >>
Goodyear to present at Deutsche Bank Virtual Investor Conference
10.06.2021
The Goodyear Tire & Rubber Company today said it will webcast its presentation during the Deutsche Bank Global Auto Industry Conference on June 16, 2021.Darren R. Wells, executive vice president and chief financial officer, will provide a business overview. more >>
EU budget 2022: Speeding up Europe's recovery and progressing towards a green, digital and resilient future
09.06.2021
The Commission has today proposed an annual EU budget of €167.8 billion for 2022, to be complemented by an estimated €143.5 billion in grants under NextGenerationEU. Their combined firepower will mobilise significant investments to boost the economic recovery more >>
Draft annual EU budget 2022 - Questions and answers
09.06.2021
  1.  What are the priorities of the draft budget for 2022?The EU budget is the centrepiece of the Union's recovery efforts, aiming to get Europe back on track following the COVID-19 pandemic and its consequences. more >>
FLA - Consumer car finance market boost in April as showrooms re-open
07.06.2021
New figures released today by the Finance & Leasing Association (FLA) show that the consumer car finance market reported growth in new business volumes of 1276% in April 2021 compared with the same month in 2020. In the first four months of 2021, new business volumes were 13% higher than in the same period in 2020. more >>
2001-2022 copyright automobilsport.com