October 23, 2020 - Daimler assumes that economic conditions in the most important markets continue to normalize and in particular that no further setbacks occur as a result of the COVID-19 pandemic. Based on this, Daimler expects that the significant unit-sales reductions recorded in the first nine months due to the COVID-19 pandemic will only be partially offset by the end of the year.
The company therefore expects Group unit sales and Group revenue in 2020 to be significantly lower than in the previous year. On the basis of the expected market development and the current assessments of the divisions, Daimler anticipates Group EBIT in 2020 at the level of the prior year.
The divisions expect the following adjusted returns in the year 2020:
- Mercedes-Benz Cars & Vans: adjusted return on sales of 4.5 – 5.5%
- Daimler Trucks & Buses: adjusted return on sales of 1 – 2%
- Daimler Mobility: adjusted return on equity of 9 – 10%.
The adjusted cash conversion rate (ratio of cash flow to EBIT) for the Mercedes-Benz Cars & Vans division in 2020 is expected to be at 1 and for Daimler Trucks & Buses at 2. Daimler anticipates a significant increase of the free cash flow of the industrial business compared to the previous year. This guidance does not take into account possible expenses in connection with legal and governmental proceedings.