Daimler: Preliminary Results for The First Guarter are Above Market Expectations

The car manufacturer Daimler is satisfied with the preliminary results for the first quarter. As the company announced on Friday, the sales figures are well above market expectations. The first quarter of the year was positively influenced, among other things, by increased sales of Mercedes-Benz vehicles.

The Daimler Group EBIT, the adjusted EBIT of Mercedes-Benz Cars & Vans, the adjusted return on sales of Daimler Trucks & Buses, the adjusted EBIT of Daimler Mobility and the free cash flow of Daimler’s industrial business for the first quarter of 2021 are all significantly higher the market expectation.

In addition to the underlying operational performance, effective working capital management led to a better than expected free cash flow of the industrial business in the first quarter of 2021. This includes the balance of costs for legal proceedings and restructuring as well as income from M&A transactions.

The following figures for the first quarter of 2021 are preliminary and unaudited:

– Free cash flow of the industrial business: € 1,810 million (consensus: € 1,102 million);
Adjusted free cash flow of the industrial business: € 2,832 million (consensus: € 1,802 million)

– Net liquidity in the industrial business: € 20.1 billion (year-end 2020: € 17.9 billion)

– Daimler Group EBIT: € 5,748 million (consensus: € 4,964 million);
Adjusted EBIT: € 4,970 million (consensus: € 3,987 million)

– EBIT Mercedes-Benz Cars & Vans: € 4,078 million (consensus: € 3,543 million);
Adjusted EBIT: € 3,841 million (consensus: € 3,055 million);
Adjusted return on sales (RoS): 14.3% (consensus: 11.7%)

– EBIT Daimler Trucks & Buses: € 1,041 million (consensus: € 1,026 million);
Adjusted EBIT: € 518 million (consensus: € 488 million);
Adjusted return on sales (RoS): 6.0% (consensus: 5.3%)

– EBIT Daimler Mobility: € 744 million (consensus: € 569 million);
Adjusted EBIT: € 691 million (consensus: € 579 million);
Adjusted return on equity (RoE): 18.7% (consensus: n / a)

The preliminary figures include the following EBIT-adjusting effects:

Mercedes-Benz Cars & Vans

– Costs of € 75 million for legal proceedings

– Restructuring costs of € 292 million

– Income of € 604 million from M&A transactions (completion of the cellcentric joint venture)

Daimler Trucks & Buses

– Restructuring costs of € 88 million

– Income of € 611 million from M&A transactions (completion of the cellcentric joint venture)

Daimler Mobility

– Restructuring costs of € 36 million

– Income of € 89 million from M&A transactions

The full quarterly figures will be published on April 23, 2021.

The definitions of (adjusted) EBIT, adjusted return on sales and equity, and (adjusted) free cash flow in the industrial business are described in the Daimler Annual Report 2020 on pages 43 and 44.

 

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