DAIMLER TO RESTRUCTRE ITS ORGANIZATION
The shareholders of Daimler AG voted to reorganize the Daimler Group by a large majority at the latest Annual Meeting in Berlin. This clears the way for the Group to place its car and van business as well as its truck and bus business into two legally independent entities by way of a spin-off. The project is called 'Project future' and will come into affect in November 2019.
From that date onwards, Mercedes-Benz AG will be responsible for the current Mercedes-Benz Cars and Mercedes-Benz Vans divisions, while Daimler Trucks and Daimler Buses will be joined in Daimler Truck AG. Daimler Financial Services AG, which is already legally independent, will be called Daimler Mobility AG from July 24, 2019 on. “Today, the shareholders of Daimler AG have approved our plans for a new, modern Group structure. This will enhance our ability to act in a dynamically growing competitive environment, including in terms of raising capital. It will also let us to better respond to customer and market needs. With this new structure, we want to offer our employees a long-term perspective. We are in agreement with the employee representatives on this,” said Manfred Bischoff, Chairman of the Supervisory Board of Daimler AG.
For the current year, Daimler continues to expect to be able to slightly increase its unit sales (2018: 3.4 million vehicles). On the basis of the expected sales development, a further slight increase in revenue is anticipated. The divisions expect to achieve the following return on sales: Mercedes-Benz Cars: a return on sales of 6 to 8 percent, Daimler Trucks: a return on sales of 7 to 9 percent, Mercedes-Benz Vans: a return on sales of 0 to 2 percent, Daimler Buses: a return on sales of 5 to 7 percent, and - Daimler Financial Services: a return on equity of 17 to 19 percent. Revenue amounted to €167.4 billion (2017: €164.2 billion). EBIT amounted to €11.1 billion, which is significantly below the prior-year level (2017: €14.3 billion). Net profit decreased to €7.6 billion (2017: €10.6 billion) while earnings per share decreased to €6.78 (2017: €9.61).
Also at the Annual Shareholders’ Meeting Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, stepped down after more than 13 years as Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. With effect at the end of a two-year cooling off period, the Supervisory Board intends to propose to the 2021 Annual Meeting that Zetsche be elected to the Supervisory Board. Ola Källenius has been appointed Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars for a period of five years.