April 23, 2021 - Based on the expected market development and the current assessments of the divisions, Daimler continues to anticipate Group unit sales, revenues and EBIT in 2021 to be significantly above the prior year’s level.
Daimler expects a gradual normalization of economic conditions in the important markets. The company assumes that the world economy will be able to recover from the pandemic-related weakness of the year 2020, aided by the increasing availability of effective vaccines, among other things.
Based on the expected market development and the current assessments of the divisions, Daimler continues to anticipate Group unit sales, revenues and EBIT in 2021 to be significantly above the prior year’s level. The current worldwide supply shortage in certain semiconductor components affected deliveries in the first quarter. Daimler anticipates that this shortage could further impact sales in the second quarter. Although visibility is limited at present, Daimler assumes some recovery in the third and fourth quarter.
Based on the performance in the first quarter, the divisions expect the following adjusted returns in the year 2021:
- Mercedes-Benz Cars & Vans: adjusted return on sales of 10 - 12%
- Daimler Trucks & Buses: adjusted return on sales of 6 - 7%
- Daimler Mobility: adjusted return on equity of 14 - 15%.
Daimler’s business plan covers the full year 2021 and is based on the existing Group structure, including Daimler Trucks & Buses. The spin-off of Daimler Truck, including significant parts of the related financial services business, will be examined before the end of 2021. Before the spin-off, Daimler will reclassify Daimler Truck as discontinued operations. The expected considerable positive effects in the second half of the year cannot be reliably determined at present.
The adjusted cash conversion rate (ratio of cash flow to EBIT) for the Mercedes-Benz Cars & Vans division in 2021 is expected to be between 0.7 and 0.9 and for Daimler Trucks & Buses between 0.8 and 1.0. Daimler expects the reported free cash flow of the industrial business for 2021 to be below 2020's figure, due to the payments in the context of the settlement with the US-regulators in civil-law proceedings relating to diesel emissions. The adjusted free cash flow of the industrial business is now expected to be in the vicinity of the prior-year level despite higher cash taxes.