Daimler Q3 Profit Up, Unit Sales Weak; Backs Positive Outlook For FY21; Stock Up
Shares of Daimler AG were gaining around 2 percent in the morning trading in Germany after the automaker Friday reported said it continues to expect significantly higher EBIT and revenue for fiscal 2021 after reporting increased profit in its third quarter. Revenues were nearly flat in the quarter despite considerably lower production and sales due to the semiconductor shortage.
For fiscal 2021, the company, which is spinning off Daimler Trucks & Buses division, continues to expect Group EBIT will be significantly above the level of 2020, which was adversely affected in particular by the covid-19 pandemic. The company noted that demand for all products remains strong in all markets.
In the year 2021, unit sales of industrial business are expected to be at prior-year level assuming that commercial vehicle business remains within the company, while unit sales would be slightly lower taking into account the spin-off of Daimler’s commercial vehicle business.
For the third quarter, Group net profit was 2.57 billion euros, 19 percent higher than last year’s 2.16 billion euros. Earnings per share were 2.31 euros, up 21 percent from 1.91 euros last year. The share from discontinued operations was 549 million euros, up 58 percent from last year, related to the planned spin off of former Daimler Trucks & Buses division.
Group EBIT was 3.58 billion euros, a growth of 17 percent from the prior year thanks to improved product mix, revenue quality and a tight grip on fixed costs. Adjusted EBIT increased 4 percent to 3.61 billion euros.
Group revenue was 40.08 billion euros, nearly same as last year’s 40.28 billion euros. Revenue from discontinued operations declined 3 percent to 8.44 billion euros.
Total unit sales decreased 25 percent to 577,800 passenger cars and commercial vehicles from 772,700 units a year ago mainly due to the global supply constraints.
Mercedes-Benz Cars & Vans revenue edged down 1 percent from last year to 25.60 billion euros, and unit sales declined 30 percent to 471,404 units. Daimler Trucks & Buses revenues fell 4 percent, while unit sales grew 7 percent. Daimler Mobility’s revenue remained flat.
In Germany, Daimler shares were trading at 85.38 euros, up 1.82 percent.
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