Daimler AG (ticker symbol DAI) continued along its successful growth path in the first half of 2017 and set new records for unit sales and revenue in the second quarter.
Stuttgart, Germany - Daimler AG (ticker symbol DAI) continued along its successful growth path in the first half of 2017 and set new records for unit sales and revenue in the second quarter. In the months of April through June, Daimler sold 822,500 cars and commercial vehicles worldwide (+8%), which is another record for unit sales. Contributions to the Group’s bestever unit sales came from all automotive divisions, in particular the records set by Mercedes-Benz Cars (595,200 vehicles, +9%) and Mercedes-Benz Vans (103,400 vehicles, +4%) and the sales growth at Daimler Trucks (116,400 vehicles, +8%). Group revenue reached the best-ever figure of €41.2 billion and was thus 7% higher than in the second quarter of last year. Adjusted for exchange-rate effects, revenue increased by 5%.
The Daimler Group achieved EBIT of €3,746 million in the second quarter of this year, which is a significant 15% higher than the EBIT of €3,258 million posted in the prior-year quarter. Net profit improved slightly to €2,507 million (Q2 2016: €2,452 million). Net profit attributable to the shareholders of Daimler AG amounted to €2,439 million (Q2 2016: €2,429 million), equivalent to earnings per share of €2.28 (Q2 2016: €2.27).
“We had an excellent second quarter. This strong core business is the best basis to exploit new business models around the CASE topics,” stated Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. CASE stands for the four strategic pillars of connectivity (Connected), autonomous driving (Autonomous), flexible use (Shared & Services) and electric drive (Electric), which Daimler is linking up intelligently. “Our strategy is taking effect. We have set ourselves ambitious goals. And we are achieving them – in terms of unit sales and profitability. Step by step, we are optimizing efficiency throughout the Group. The transformation of Daimler is going ahead at full speed. And we have everything we need for it: the resources to invest and the scope to innovate.”
The significant earnings growth at the Mercedes-Benz Cars division in the second quarter of 2017 was aided by the positive development of unit sales of the new E-Class and the SUV models. An additional factor is that special items had a negative impact on earnings in the second quarter of last year. Earnings at the Daimler Trucks division reflect expenses for customer service measures at Mercedes-Benz Trucks, and despite efficiency gains, did not match the earnings of the prior-year quarter. Mercedes-Benz Vans and Daimler Buses achieved high levels of EBIT but lower than the amounts posted in the prior-year quarter. In the automotive business, the operating return on sales once more achieved its target at 9.2% (Q2 2016: 8.3%). The Daimler Financial Services division’s EBIT slightly surpassed the prior-year figure. Exchange-rate effects had a positive impact on operating profit at all divisions.
“We are successfully utilizing growth opportunities and making systematic use of business potential as well as the opportunities of digitization,” said Bodo Uebber, Member of the Board of Management of Daimler AG responsible for Finance & Controlling and Daimler Financial Services. “We will therefore invest more and comprehensively in the future, so from today’s perspective, investment in property, plant and equipment and research and development expenditure will be increased significantly this year and in the coming years. We have the financial resources that are required for this growth path.”
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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, 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; 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 costreduction 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.