Daimler AG / Quarter Results
24.07.2008
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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Net profit of 1,395 million (Q2 2007: 1,849 million)
Earnings per share of 1.40 (Q2 2007: 1.74)
Full-year EBIT from ongoing operations (excluding Chrysler) expected to
exceed 7 billion
Stuttgart - Daimler AG (stock-exchange abbreviation DAI) continued its
successful development of the prior quarter with a very good second quarter
of 2008.
Daimler achieved EBIT of 2,053 million in the second quarter of this year
(Q2 2007: 2,134 million).
The Mercedes-Benz Cars and Daimler Trucks divisions were able to slightly
increase their earnings. The Mercedes-Benz Vans and Daimler Buses units
also achieved higher EBIT.
The decrease in Group earnings was mainly related to Daimlers interest in
Chrysler (charges of 373 million).
Net profit amounted to 1,395 million (Q2 2007: 1,849 million), equivalent
to earnings per share of 1.40 (Q2 2007: 1.74).
Details of the divisions in the first quarter of 2008
Mercedes-Benz Cars increased its unit sales by 11% in the second quarter.
Revenue rose by 3% to 12.9 billion.
The division increased its EBIT by 1% to 1,212 million.
Daimler Trucks sold 122,800 vehicles in the second quarter of 2008,
significantly more than in the prior-year period (+10%), despite the
ongoing weakness of the US economy. Revenue increased from 6.9 billion to
7.4 billion.
The Daimler Trucks division posted EBIT of 608 million, thus
slightly exceeding its earnings in the second quarter of last year
(601 million). The result for the prior-year quarter was favorably
affected by a special gain of 68 million realized on the sale of
real-estate properties in Japan.
Daimler Financial Services increased its total contract volume by 4% to
60.4 billion in the second quarter of 2008. New business of 7.8 billion
was 6% higher than in the second quarter of 2007.
EBIT of 183 million reported by Daimler Financial Services for the second
quarter of 2008 was lower than the result for the prior-year period (Q2
2007: 220 million).
The second-quarter EBIT of the Vans, Buses, Other segment amounted to 148
million (Q2 2007: 257 million). Mercedes-Benz Vans and Daimler Buses
benefited from the continued very positive development of unit sales and
both achieved higher earnings. Mercedes-Benz Vans reported EBIT of 262
million and Daimler Buses reported EBIT of 170 million.
Daimlers share of the earnings of EADS amounted to 32 million (Q2 2007:
95 million). Our interest in Chrysler negatively affected EBIT in the
second quarter of 2008 by 373 million; this result includes proportional
expenses of 93 million resulting from the restructuring measures at
Chrysler.
Outlook
Although the headwind for the automotive industry and also for Daimler has
become stronger as a result of the slowdown of global growth and the weak
economy in the United States, Daimler continues to assume that its
divisions will be able to achieve their unit-sales targets for full-year
2008.
Based on the divisions planning, Daimler expects total unit sales to
increase in the year 2008 (2007: 2.1 million vehicles).
Mercedes-Benz Cars expects to increase unit sales in the year 2008. The
full availability of the new C-Class sedan and station wagon as well as the
new smart fortwo will make a big contribution to this sales increase. In
the second half of the year, we expect new sales stimulus from the recently
introduced A- and B-Class models, the CLS, SLK, SL and the new CLC. The
launch of the refreshed M-Class and especially the new GLK in late 2008
will also provide additional sales momentum in the following year. However,
for lifecycle reasons, the division expects unit sales of the E-Class to
fall somewhat, as this car is in its last full model year. In view of the
worsening economic environment, production output will be adjusted compared
with the previous planning. The changed market outlook, rising
raw-material prices and ongoing negative exchange-rate effects will also
lead to burdens on earnings that cannot be fully offset by our significant
efficiency improvements and higher unit sales. EBIT is therefore expected
to be lower than in the prior year, with a return on sales in the
magnitude of 8%.
Daimler Trucks looks forward to rising unit sales in full-year 2008. This
is largely due to the positive developments in Europe and growth in Asian
markets. Higher material costs and the effects of the weaker US economy
will offset this positive development. Overall Daimler Trucks
anticipates full-year earnings in the magnitude of 2 billion.
Daimler Financial Services anticipates a moderate increase in its worldwide
contract volume in full-year 2008. Despite the expenses connected with
setting up its own financial services organization in North America, the
division continues to assume that it will achieve
a return on equity of at least 14% in the full year.
Due to strong demand for the Sprinter and the positive sales trend of the
Vito/Viano, Mercedes-Benz Vans expects significant growth with a new
unit-sales record in 2008.
Daimler Buses also expect to match the high level of unit sales achieved in
the prior year once again.
The Daimler Group anticipates a slight increase in the total revenue in
full-year 2008 (2007: 99.4 billion).
The Daimler Group believes it continues to be very well positioned with
regard to the competition. However, it will not be possible to fully
compensate for the aforementioned negative macroeconomic factors such as
the slowdown of global growth, rising raw-material prices and unfavorable
exchange-rate effects by means of higher unit sales and further efficiency
improvements.
On the basis of the divisions projections, the Daimler Group expects to
post EBIT from ongoing operations of more than 7 billion in 2008. Effects
related to Chrysler are not included therein. Daimler had previously
anticipated EBIT from ongoing operations of significantly above the prior
years level (7.7 billion).
Further information from Daimler is available on the internet at:
www.media.daimler.com
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 credit 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.
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.
DGAP 24.07.2008
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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 2,053 million in second quarter of 2008
| Source: EQS Group AG