Daimler AG / Quarter Results
29.04.2008
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Stuttgart Daimler AG (stock-exchange abbreviation DAI) today presents its
interim report on the first quarter of 2008. Daimler achieved EBIT of
1,976 million in the first quarter (Q1 2007: 3,292 million).
The Mercedes-Benz Cars division improved its EBIT and thus compensated for
the lower earnings recorded by Daimler Trucks and Daimler Financial
Services.
Earnings decreased primarily because EBIT in the first quarter of 2007
included a special gain of 1,563 million related to the transfer of EADS
shares. In the first quarter of 2008, special gains were realized in
connection with the sale of the real-estate properties at Potsdamer Platz
(449 million) and in connection with the transfer of EADS shares (102
million). There were opposing effects from expenses of 491 million related
to Chrysler.
Net profit amounted to 1,332 million (Q1 2007: 1,972 million),
equivalent to earnings per share of 1.29 (Q1 2007: 1.89).
Unit sales up by 9% in Q1 2008
In the first quarter of 2008, Daimler sold 503,800 cars and commercial
vehicles worldwide, thus surpassing the figure for the prior-year period by
9%.
Daimlers revenue increased slightly from 23.4 billion to 23.5 billion in
the first quarter of 2008. Adjusted for exchange-rate effects and changes
in the consolidated group, revenue growth amounted to 4%.
Mercedes-Benz Cars increased its unit sales by 17% to 318,300 vehicles in
the first three months of this year, thus setting a new record for the
first quarter. The Mercedes-Benz brand sold 284,000 vehicles, an increase
of 10%, also achieving a new record for the first quarter. The smart brand
almost tripled its unit sales from 10,800 to 31,200 cars. The divisions
revenue grew by 4% to 12.5 billion.
Mercedes-Benz Cars EBIT improved by 45% to 1,152 million.
The significant increase in earnings was mainly a result of the good
development of unit sales for both the Mercedes-Benz and smart brands. Unit
sales of the C-Class and the smart fortwo were particularly positive.
Further efficiency advances also contributed to the EBIT improvement.
Exchange-rate effects and increased raw-material prices had a negative
impact on EBIT in the first quarter of 2008.
Daimler Trucks sold 107,700 vehicles worldwide in the first quarter of 2008
(Q1 2007: 119,200). The decrease is primarily due to the significantly
lower sales volume in the USA and supplier bottlenecks in Germany. Revenue
decreased from 7.3 billion to 6.3 billion.
The Daimler Trucks division posted EBIT of 403 million (Q1 2007: 528
million). The decrease in earnings is primarily due to the tense economic
situation in the United States and the weaker demand caused by the
introduction of the EPA 07 exhaust-emission standards in the US in 2007.
Earnings were also reduced in Europe as a result of production losses
caused by a supply bottleneck of one supplier. But Daimler Trucks assumes
it will be able to compensate for this production loss during the rest of
the year. Earnings were positively affected, however, by the ongoing
favorable sales trend in Latin America and in some important Asian markets.
There were additional positive effects from efficiency improvements and
improved product positioning.
Daimler Financial Services increased its contract volume by 2% to 58.3
billion in the first quarter of 2008. In the first quarter of 2008, 15
subsidiaries were fully consolidated for the first time (mainly in Eastern
Europe and Asia). Adjusted for these consolidation effects and for
exchange-rate effects, the increase was 7%. New business of 6.7 billion
was 2% below the prior-year level. After adjusting for the two
aforementioned factors, there was also a decrease of 2%.
EBIT of 168 million reported by Daimler Financial Services for the first
quarter of 2008 was lower than the result for the prior-year period (Q1
2007: 214 million). The decrease in earnings was mainly due to the
expenses incurred to set up a new financial services organization in the
NAFTA region following the transfer of a majority interest in Chrysler.
Increased risk costs also had a negative impact, but remained below the
long-term average. There was a positive impact on earnings, however, from
the increased contract volume.
EBIT of the Vans, Buses, Other segment amounted to 371 million (Q1 2007:
1,872 million). The decrease in earnings was primarily caused by the lower
special gain of 102 million related to the transfer of EADS shares (Q1
2007: 1,563 million). The sale of the real-estate properties at Potsdamer
Platz resulted in a special gain of 449 million in the first quarter of
2008.
The Mercedes-Benz Vans and Daimler Buses units profited from the continued
positive development of unit sales and both achieved higher earnings, which
are now reported individually for the quarters due to the growing
importance of the business. Mercedes-Benz Vans reported EBIT of 186
million and Daimler Buses reported EBIT of 75 million.
Daimlers share of the earnings of EADS amounted to 22 million (Q1 2007:
165 million). The companys 19.9% interest in Chrysler, which is accounted
for using the equity method, reduced EBIT by 340 million in the first
quarter of 2008; this result includes expenses of 94 million resulting
from the restructuring actions at Chrysler. As the Group generally applies
the equity method of accounting for its interests in EADS and Chrysler with
a three-month time lag, these figures mainly reflect the developments in
the fourth quarter of 2007.
These results are by no means indicative for the results to be reported by
Chrysler Holding LLC due to substantial valuation differences between
US-GAAP used by Chrysler and IFRS accounting used by Daimler.
In connection with the transfer of a majority interest in Chrysler, the
Group retained certain rights contingent upon the development of economic
circumstances, in particular the development of residual values of Chrysler
vehicles. At the time of the Chrysler transaction, these rights were
measured and recognized as an asset in an amount of 185 million. In light
of falling residual values of Chrysler vehicles, Daimler had to impair
these assets by 151 million in the first quarter of 2008. Neither the
equity result of Chrysler nor the impairment of the assets is cash
effective.
Outlook
Although economic growth has slowed down as a result of the international
financial crisis particularly in the United States making life harder
for the automotive industry including Daimler, the Group continues to
assume that the unit-sales targets it has set for its divisions will be met
in 2008.
Based on the divisions planning, Daimler expects its total unit sales to
increase in the year 2008 (2007: 2.1 million vehicles).
Mercedes-Benz Cars expects to further increase its worldwide unit sales in
2008, thus surpassing the record level of the prior year. The full
availability of the sedan and station-wagon versions of the new C-Class and
of the new smart fortwo will make a decisive contribution to this
development. Mercedes-Benz Cars expects to achieve a renewed increase in
EBIT in 2008.
The Daimler Trucks division anticipates rising unit sales for full-year
2008. This will result on the one hand from the positive development of
some Asian markets and on the other hand from higher unit sales in Europe
primarily due to the growth of markets in Eastern Europe. Based on these
unit-sales expectations and the ongoing implementation of our Global
Excellence program, Daimler Trucks assumes that the divisions earnings in
full-year 2008 will be higher than in the prior year.
Daimler Financial Services anticipates a moderate increase in its business
volume as the year progresses. Despite the expenses connected with
developing its own financial services organization in North America,
Daimler Financial Services continues to assume that it will achieve a
return on equity of at least 14% in full-year 2008.
Due to the strong demand for the new Sprinter and the positive sales trend
of the Vito/Viano, Mercedes-Benz Vans expects a significant increase in
unit sales and a new unit-sales record in the year 2008.
Daimler Buses also anticipates a continuation of strong demand and is
therefore confident that it will match the high level of unit sales
achieved in the prior year.
The Daimler Group assumes that total revenue will increase moderately in
full-year 2008 (2007: 99.4 billion).
On the basis of the divisions confirmed projections, in 2008 the Daimler
Group continues to expect to post EBIT from ongoing operations of well
above the prior-year level. Effects related to Chrysler are not included
therein. In the year 2007, earnings included positive contributions in
particular from the transfer of shares in EADS and negative contributions
from Chrysler and related to the new management model.
Further information on Daimler is available on the Internet at
www.media.daimler.com.
About Daimler
Daimler AG, Stuttgart, with its businesses Mercedes-Benz Cars, Daimler
Trucks, Daimler Financial Services, Mercedes-Benz Vans and Daimler Buses,
is a globally leading producer of premium passenger cars and the largest
manufacturer of commercial vehicles in the world. The Daimler Financial
Services division has a broad offering of financial services, including
vehicle financing, leasing, insurance and fleet management.
Daimler sells its products in nearly all the countries of the world and has
production facilities on five continents. The companys founders, Gottlieb
Daimler and Carl Benz, continued to make automotive history following their
invention of the automobile in 1886. As an automotive pioneer, Daimler and
its employees willingly accept an obligation to act responsibly towards
society and the environment and to shape the future of safe and sustainable
mobility with groundbreaking technologies and high-quality products. The
current brand portfolio includes the worlds most valuable automobile
brand, Mercedes-Benz, as well as smart, AMG, Maybach, Freightliner,
Sterling, Western Star, Mitsubishi Fuso, Setra, Orion and Thomas Built
Buses. The company is listed on the stock exchanges in Frankfurt, New York
and Stuttgart (stock exchange abbreviation DAI). In 2007, the Group sold
2.1 million vehicles and employed a workforce of over 270,000 people;
revenue totaled 99.4 billion and EBIT amounted to 8.7 billion. Daimler is
an automotive Group with a commitment to excellence, and aims to achieve
sustainable growth and industry-leading profitability.
This document contains forward-looking statements that reflect our current
views about future events. The words 'anticipate,' 'assume,' 'believe,'
'estimate,' 'expect,' 'intend,' 'may,' 'plan,' 'project,' 'should' and
similar expressions are used to identify forward-looking statements. These
statements are subject to many risks and uncertainties, including an
economic downturn or slow economic growth in important economic regions,
especially in Europe or North America; the effects of the subprime crisis
which could result in a weaker demand for our products particularly in the
U.S. but as well in the European market; changes in currency exchange rates
and interest rates; the introduction of competing products and the possible
lack of acceptance of our products or services; price increases in fuel,
raw materials, and precious metals; disruption of production due to
shortages of materials, labor strikes or supplier insolvencies; a decline
in resale prices of used vehicles; the business outlook for Daimler Trucks,
which may be affected if the U.S. and Japanese commercial vehicle markets
experience a sustained weakness in demand for a longer period than
expected; the effective implementation of cost reduction and efficiency
optimization programs; the business outlook of Chrysler, in which we hold
an equity interest, including its ability to successfully implement its
restructuring plans; the business outlook of EADS, in which we hold an
equity interest, including the financial effects of delays in and
potentially lower volumes of future aircraft deliveries; changes in laws,
regulations and government policies, particularly those relating to vehicle
emissions, fuel economy and safety, the resolution of pending governmental
investigations and the outcome of pending or threatened future legal
proceedings; and other risks and uncertainties, some of which we describe
under the heading 'Risk Report' in Daimlers most recent Annual Report and
under the headings 'Risk Factors' and 'Legal Proceedings' in Daimlers most
recent Annual Report on Form 20-F filed with the Securities and Exchange
Commission. If any of these risks and uncertainties materialize, or if the
assumptions underlying any of our forward-looking statements prove
incorrect, then our actual results may be materially different from those
we express or imply by such statements. We do not intend or assume any
obligation to update these forward-looking statements. Any forward-looking
statement speaks only as of the date on which it is made.
DGAP 29.04.2008
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Language: English
Issuer: Daimler AG
Mercedesstraße 137
70327 Stuttgart
Deutschland
Phone: +49 (0)711-17 413 61
Fax: +49 (0)711-17 413 72
E-mail: ir.dai@daimler.com
Internet: http://www.daimler.com
ISIN: DE0007100000
WKN: 710000
Indices: DAX, EURO STOXX 50
Listed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart;
Freiverkehr in Berlin, Hannover, München, Hamburg,
Düsseldorf; Foreign Exchange(s) NYSE
End of News DGAP News-Service
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DGAP-Adhoc: Daimler AG: Daimler achieves EBIT of 1,976 million in first quarter of 2008
| Source: EQS Group AG