DAIMLER BUSES FIRST-QUARTER 2020: DECREASE IN UNIT SALES OF 8%
In the first quarter of 2020 Daimler Buses sold 5,100 vehicles (Q1 2019: 5,500) – a decrease of 8%. In total Daimler Trucks and Buses division reported a decrease in unit sales of 20% to 97,600 vehicles in the first quarter (Q1 2019: 121,400). Sales by Daimler Trucks fell by 20% to 92,500 vehicles. Revenue was 8.7 billion euros (Q1 2019: 10.2 billion euros). The Group’s total unit sales decreased by 17% to 644,300 passenger cars and commercial vehicles (Q1 2019: 773,800) due to the global spread of the corona virus.
Daimler AG revenues slipped slightly by 6% to 37.2 billion euros (Q1 2019: €39.7 billion). First-quarter EBIT was €617 million (Q1 2019: €2,798 million). Adjusted EBIT, reflecting the underlying business, was €719 million (Q1 2019: €2,310 million). At Daimler buses EBIT amounted to 247 million euros (Q1 2019: €553 million) and return on sales was 2.8% (Q1 2019: 5.4%). Cash flow before interest and taxes (CFBIT) was minus 85 million euros (Q1 2019: minus €232 million). Sales by the Mercedes-Benz Cars & Vans division decreased by 16% to 546,700 vehicles in the first quarter (Q1 2019: 652.400). Sales by Mercedes-Benz Cars slipped by 15% to 470,600 vehicles in the first quarter (Q1 2019: 555.300). Mercedes-Benz Vans’ sales were down 22% to 76,200 vehicles (Q1 2019: 97,000). At Daimler Mobility, new business decreased by 7% to 16.2 billion euros in the first quarter (Q1 2019: €17.3 billion). Contract volume was 159.6 billion euros at the end of the quarter (December 31, 2019: €162.8 billion).
Daimler expects the world economy to be dominated by the corona pandemic during the rest of the year. “From today’s perspective, a significant decline in global economic output must be anticipated for the year 2020 as a whole.” Daimler believes that the original forecast for the financial year 2020, as disclosed in connection with annual report 2019, is no longer valid and expects this year to sell less cars, vans, trucks and buses compared to 2019. Daimler Mobility expects for the financial year 2020 a lower new business volume than in 2019. But Daimler states that having implemented a comprehensive set of cash protection measures and having increased the financial flexibility, it is confident of being well positioned to manage its business, both during and after the pandemic. Although it also announces to reduce its spending on property, plant and equipment as well as on research and development compared with the previous year. The Group’s investments in property, plant and equipment in the first quarter totaled 1.6 billion euros (Q1 2019: €1.7 billion). Research and development expenditure amounted to 2.4 billion euros (Q1 2019: €2.4 billion). The free cash flow of the industrial business was minus 2.3 billion euros (Q1 2019: minus €2.0 billion).