DAIMLER SALES IN BUSES DECREASED BY 63%
Daimler AG today reported its results for the second quarter of 2020. The key figures were strongly influenced by the corona pandemic and the resulting decline in demand for cars, vans, trucks and buses. The amount of buses sold was 3,088, a decrease of 5,347 units (-63%) compared to the second quarter of 2019. Daimler also reports that the order intake is developing positively in nearly all core regions.
The Daimler Trucks & Buses division showed a decrease in unit sales of 55% to 61,000 vehicles in the second quarter (Q2 2019: 134,900). This results in a decline in the adjusted EBIT for the Trucks & Buses division to minus €747 million (Q2 2019: plus €834 million). The adjusted return on sales was minus 12% (Q2 2019: plus 7.2%). Daimler explains that the declining volumes had a strong impact on earnings while restructuring activities, which according to the company should improve long-term competitiveness and reduce fixed costs significantly. Over the first six months Daimler sold 8,194 units, 41% less compared to the first six months in 2019 were the Bavarian manufacturer sold 13,961 units.
The Group’s total unit sales decreased by 34% to 541,800 passenger cars and commercial vehicles (Q2 2019: 821,700). Revenue slipped significantly by 29% to €30.2 billion (Q2 2019: €42.7 billion). EBIT was minus €1,682 million (Q2 2019: minus €1,558 million).
Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG: “Due to the unprecedented COVID-19 pandemic, we had to endure a challenging quarter. But our net industrial liquidity is a testament to effective cost control and cash management, which we must continue to enforce. We are now seeing the first signs of a sales recovery – especially at Mercedes-Benz passenger cars, where we are experiencing strong demand for our top end models and our electrified vehicles. Going forward, we are firmly determined to continue to improve the cost base of our company. At the same time, we are committed to our key strategic objectives: to lead in electrification and digitalization.”
Daimler states the covid-19 pandemic will continue to have a strong impact on developments during the rest of the year. From today’s perspective, a considerable decline in global economic output must be expected for full-year 2020. Despite this warning Daimler expects the group's EBIT and industrial free cash flow for the full year 2020 to be positive but lower than in previous year.Because of the assumed pandemic-related decrease in unit sales Daimler intensifies efficiency and capacity measures. It already announced redundancy schemes concerning up to 20.000 of its staff.