Daimler AG / Key word(s): Preliminary Results/Forecast
Preliminary results for the first quarter 2020 and outlook for the financial year 2020
Stuttgart, Germany - 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)
- Mercedes-Benz Cars & Vans EBIT: 510mn EUR (Q1-19: 1,143mn EUR); adjusted EBIT: 603mn EUR (Q1-19: 1,372mn EUR)
- Daimler Trucks & Buses EBIT: 247mn EUR (Q1-19: 553mn EUR); adjusted EBIT: 247mn EUR (Q1-19: 553mn EUR)
- Daimler Mobility EBIT: 58mn EUR (Q1-19: 1,209mn EUR); adjusted EBIT: 58mn EUR (including COVID-19 related provisions for credit risks of 0.4bn EUR) (Q1-19: 491mn EUR)
- Net industrial liquidity: 9.3bn EUR (Q1-19: 11.0bn EUR)
- 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)
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believe that the original forecast for the financial year 2020, as disclosed in connection with annual report 2019, is no longer valid.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.
As a result we expect the group revenue for the financial year 2020 to be below the prior year.
Given the anticipated market development and the assessment of our divisions, we expect the group EBIT for the financial year 2020 to be below the prior year.
The adjusted return on equity of Daimler Mobility for the financial year 2020 will not reach the prior year level.
The decline in the results will lead to a decline in our Industrial Free Cash Flow for 2020.
Having implemented a comprehensive set of cash protection measures and having increased our financial flexibility, we are confident that we are well positioned to manage the business, both during and after the COVID-19 pandemic.
The full quarterly results will be published on April 29, 2020. We will give further information on the current situation and how we are managing it on this day.
EBIT, adjusted EBIT and adjusted Return on Sales/Return on Equity are defined on pp. 64, 73 and 342 of the Daimler Annual Report 2019.
This document contains forward-looking statements that reflect our current views about future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "can," "could," "plan," "project," "should" and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of demand in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, pandemics, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates and tariff regulations; a shift in consumer preferences towards smaller, lower-margin vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; price increases for fuel or raw materials; disruption of production due to shortages of materials, labor strikes or supplier insolvencies; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending government investigations or of investigations requested by governments and the conclusion of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading "Risk and Opportunity Report" in the current Annual Report. If any of these risks and uncertainties materializes or if the assumptions underlying any of our forward-looking statements prove to be incorrect, the 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 since they are based solely on the circumstances at the date of publication.
Tel.: +49 (0)711 17 35014
|Phone:||+49 (0)711 17-0|
|Fax:||+49 (0)711 179 40 75|
|Indices:||DAX, EURO STOXX 50|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Tradegate Exchange|
|EQS News ID:||1027865|
|End of Announcement||DGAP News Service|