[ad_1]
Stuttgart, Germany, July 21, 2021 /PRNewswire/ –
- Passenger car and commercial vehicle sales increased 36% to 736,400 units
- Revenues of 43.5 billion euros (2nd quarter of 2020: 30.2 billion euros)
- Earnings before interest and taxes of 5.185 billion euros (Q2 2020: minus 1.682 billion euros)
- Industrial free cash flow was 2.586 billion euros (Q2 2020: 685 million euros)
- Net industrial liquidity is 20.9 billion euros (end of the first quarter of 2021: 20.1 billion euros)
- Group net profit of 3.704 billion euros (the second quarter of 2020: net loss of 1.906 billion euros)
- Outlook for 2021: Revenue and EBIT are significantly higher than the previous year
- Industrial free cash flow is expected to be slightly lower than last year’s level
Daimler AG (stock code: DAI) today announced the results of the second quarter, as of June 30, 2021. Group Headquarters Sales volume Passenger cars and commercial vehicles increased by 36% to 736,400 units (Q2 2020: 541,800 units). income An increase of 44%, reaching 43.5 billion euros (Q2 2020: 30.2 billion euros). EBIT 5.185 billion euros (Q2 2020: minus 1.682 billion euros). Adjusted profit before interest and taxEUR 5.42 billion reflecting basic business (Q2 2020: minus EUR 708 million). net income 3.704 billion euros (the second quarter of 2020: net loss of 1.906 billion euros).
“We achieved strong performance in all divisions in the second quarter. In terms of Mercedes-Benz cars and vans, we achieved double-digit profit margins for the third quarter in a row, which proves the success of our business. Resilience-Although the supply of semiconductors continues to be sluggish. The entire industry is currently struggling with longer delivery times. Unfortunately, this also affects our customers. We are doing our best to minimize the impact . Given the high demand for our vehicles, delivery to our customers is a top priority.” Ola Källenius, Chairman of the Management Committee of Daimler AG and Mercedes-Benz AG. “Our transition to zero-emissions and software-driven mobility is supported by a high level of free cash flow in the industrial business. We are implementing our strategy at full speed.”
Investment, free cash flow and liquidity
The Group’s real estate, plant and equipment investments in the second quarter totaled 1 billion euros (the second quarter of 2020: 1.3 billion euros). Research and development expenditures amounted to 2.4 billion euros (Q2 2020: 2.3 billion euros). The free cash flow of the industrial business was 2.586 billion euros (the second quarter of 2020: 685 million euros), including important upfront investments in future products. This growth was triggered by operating performance, disciplined and concentrated capital allocation, and steady cash conversion. The adjusted free cash flow of the industrial business increased to 2.95 billion euros (Q2 2020: 778 million euros). The net liquidity of the industrial business increased to 20.9 million euros at the end of the second quarter, compared with 20.1 billion euros at the end of the first quarter of 2021 and 17.9 billion euros at the end of 2020. This is mainly due to free cash flow from industrial operations.
Division results
Sales of the Mercedes-Benz car and truck division increased by 29% in the second quarter to 619,600 units (Q2 2020: 480,800 units). Revenue was 28.2 billion euros (the second quarter of 2020: 18.9 billion euros). Earnings before interest and taxes were 3.438 billion euros (the second quarter of 2020: negative 1.125 billion euros), and the return on sales was 12.2% (the second quarter of 2020: negative 5.9%). The positive impact comes from the increase in unit sales, favorable product mix, pricing and continuous cost measures. Adjusted EBIT reached 3.604 billion euros (the second quarter of 2020: negative 284 million euros), and the adjusted return on sales was 12.8% (the second quarter of 2020: negative 1.5%). Cash flow before interest and taxes (CFBIT) was 2.502 billion euros (Q2 2020: 430 million euros). The adjusted CFBIT is EUR 2.805 billion (Q2 2020: EUR 522 million). The adjusted cash conversion rate (CCR) is positive 0.8 (Q2 2020: negative 1.8).
Sales of Mercedes-Benz cars increased by 27% in the second quarter to 521,200 vehicles (Q2 2020: 408,900 vehicles). Sales of Mercedes-Benz vans increased by 37% to 98,400 units (Q2 2020: 71,900 units).
Daimler’s truck and bus division’s sales in the first quarter increased by 91% to 116,800 units (Q2 2020: 61,000 units). Revenue is 10 billion euros (Q2 2020: 6.2 billion euros). Earnings before interest and taxes were 819 million euros (the second quarter of 2020: negative 756 million euros), and the return on sales was 8.2% (the second quarter of 2020: negative 12.2%). The positive impact on sales growth in almost all regions mainly comes from market recovery, and the higher contribution of after-sales business, pricing, continuous cost discipline to revenue, and the contribution from the listing of Proterra, Inc.. And the sale of the Campinas factory. Adjusted EBIT was 831 million euros (the second quarter of 2020: minus 747 million euros), and the adjusted return on sales was 8.3% (the second quarter of 2020: minus 12.0%). Cash flow before interest and taxes (CFBIT) soared to an inflow of 667 million euros (Q2 2020: an outflow of 121 million euros). The adjusted CFBIT inflow was 693 million euros (Q2 2020: 121 million euros outflow). The adjusted cash conversion rate (CCR) is positive 0.8 (Q2 2020: 0.2).
Sales of Daimler Trucks increased by 94% in the second quarter to 112,100 units (Q2 2020: 57,900 units). Daimler’s bus sales were 4,700 vehicles, an increase of 52% (Q2 2020: 3,100 vehicles).
At Daimler Mobility, driven by the strong sales development of the industrial business, new business in the second quarter increased by 23% to 17.2 billion euros (the second quarter of 2020: 14 billion euros). The contract value at the end of the quarter was 150.6 billion euros (end of the first quarter of 2021: 152.7 billion euros / end of 2020: 150.6 billion euros). Revenue was 6.9 billion euros (Q2 2020: 6.5 billion euros). The segment’s EBIT was 924 million euros (Q2 2020: 205 million euros). The positive impact comes from lower credit risk reserves, 120 million euros of credit reserve allocation, lower refinancing costs and improvement of business operations, as well as strict cost discipline. The return on equity was 23.9%, much higher than 5.6% in the same period last year. The adjusted EBIT was 930 million euros (the second quarter of 2020: 313 million euros), and the adjusted return on equity was 24.0% (the second quarter of 2020: 8.6%).
Daimler truck spin-off is on track
Daimler intends to create value for its shareholders and increase profitability by creating two pure companies, one focusing on cars and trucks, and the other focusing on trucks and buses. The majority of Daimler Trucks’ equity will be distributed to Daimler shareholders. The transaction and the listing of Daimler Trucks on the Frankfurt Stock Exchange are proceeding as planned and are expected to be completed before the end of 2021. The project is currently in the preparation and review stage. At the special shareholder meeting in the fall, Daimler shareholders will have to approve this historic strategic step.
Daimler and the outlook of various departments
Daimler expects that economic conditions in important markets will gradually normalize. The company assumes that the world economy will be able to recover from the pandemic-related weakness in 2020, thanks to the increase in effective vaccines. In addition, the company expects global semiconductor component supply shortages in the second half of the year will also affect the business. The company also recognizes that the visibility of how the current supply situation will further develop is low. Based on expected market development and the department’s current assessment, Daimler expects revenue and EBIT in 2021 to be significantly higher than the previous year’s levels.
The company assumes that the current global supply shortage of semiconductor components will affect Mercedes-Benz’s sales in the third quarter. Mercedes-Benz sales may be in the second quarter or below. The annual unit sales are expected to be at the level of the previous year (previously: significantly higher).
Based on the performance in the first half of the year and the above assumptions, the adjusted returns for each department in 2021 are expected to be as follows:
-Mercedes-Benz cars and trucks: adjusted return on sales of 10-12% (unchanged)
-Daimler Trucks and Buses: The adjusted return on sales is 6-8% (previously: 6-7%)
-Daimler Mobility: The adjusted return on equity is 17-19% (previously: 14-15%).
Daimler’s business plan covers the whole year of 2021 and is based on the existing group structure, including Daimler trucks and buses. The spin-off of Daimler Trucks, including important parts of related financial services businesses, will be reviewed before the end of 2021. Before the spin-off, Daimler will reclassify Daimler Trucks as a discontinued business. It is currently impossible to reliably determine the expected considerable positive impact in the second half of the year.
It is estimated that the adjusted cash conversion ratio (the ratio of cash flow to EBIT) for Mercedes-Benz’s automobile and van divisions in 2021 will be between 0.7 and 0.9, and for Daimler’s truck and bus divisions between 0.8 and 1.0.
In 2021, real estate, plant and equipment investment at the group level is expected to be the same as the previous year; R&D investment at the group level is now expected to be significantly (previously: slightly) higher than the level of the previous year.
Daimler now expects that the free cash flow of the industrial business in 2021 will be slightly (previously: significantly) lower than the figure for 2020. This includes payments in the context of the settlement…
The full story on Benzinga.com
[ad_2]
Source link
