As a result of the COVID-19 pandemic, market expectations for Daimler’s first quarter 2020 appear to show a large degree of variation. Against this background Daimler announces the following:
Preliminary figures for the first quarter 2020 are in line with our earlier communicated trend:
- Daimler Group EBIT: 617mn EUR (Q1-19: 2,798mn EUR);
adjusted EBIT 719mn EUR (Q1-19: 2,310mn EUR)
Trend as communicated: margin positive - Mercedes-Benz Cars & Vans EBIT: 510mn EUR (Q1-19: 1,143mn EUR);
adjusted EBIT:603mn EUR (Q1-19: 1,372mn EUR)
Trend as communicated: margin positive - Daimler Trucks & Buses EBIT: 247mn EUR (Q1-19: 553mn EUR);
adjusted EBIT: 247mn EUR (Q1-19: 553mn EUR)
Trend as communicated: margin positive - Daimler Mobility EBIT: 58mn EUR (Q1-19: 1,209mn EUR);
adjusted EBIT: 58mn EUR (including COVID-19 related provisions for credit risks of 0,4 bn EUR) (Q1-19: 491mn EUR)
Trend as communicated: pre-credit risk provisions margin positive - Net industrial liquidity: 9.3bn EUR (Q1-19: 11.0bn EUR)
Trend as communicated: comfortable level - Industrial Free Cash Flow: minus 2.3bn EUR (Q1-19: minus 2.0bn. EUR);
adjusted Industrial Free Cash Flow: minus 1.9bn EUR (Q1-19: minus 2,0bn EUR)
Trend as communicated: negative
The following two effects that are included in todays’ preliminary figures do not appear to be reflected in current market expectations:
- Mercedes-Benz Cars & Vans: Contribution of smart into the joint venture with Geely leading to a positive effect of +154mn EUR
- Reconciliation: Impairment on our shareholding in BAIC Motor Corporation Ltd: minus 150mn EUR
All stated figures are preliminary and unaudited.
Given the continuing effects of the COVID-19 pandemic, Daimler’s Board of Management, as already disclosed in our ad-hoc-announcement on March 17, 2020, continues to believe that the original forecast for the financial year 2020, as disclosed in connection with annual report 2019, is no longer valid.
The effect of the COVID-19 pandemic on customer demand, supply chains and vehicle production cannot be assessed with the usual degree of detail and certainty, making the re-evaluation of the forecast for the fiscal year 2020 complex. However, we do now expect the Group’s total unit sales for 2020 to be below the prior year, with lower unit sales at each of Mercedes-Benz Cars, Mercedes-Benz Vans, Daimler Trucks and Daimler Buses. For Daimler Mobility we expect for the financial year 2020 a lower new business volume than in 2019.
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SOURCE: Daimler
