Unit sales up by 13% to 595,000 vehicles Revenue above prior-year level at €30.1 billion Group EBIT of €2,231 million (Q3 2012: €1,923 million) again on a very high level Net profit of €1,897 million (Q3 2012: €1,238 million) Growth in unit sales and revenue anticipated for full-year 2013 Group EBIT from ongoing business expected to be around €7.5 billion Group EBIT in the fourth quarter expected to be higher than in the prior-year period In the third quarter of 2013, Daimler AG (ticker symbol DAI) once again achieved significantly higher earnings than in the prior-year period. The Daimler Group’s EBIT for the period of July through September amounted to €2,231 million (Q3 2012: 1,923 million). Net profit reached €1,897 million (Q3 2012: €1,238 million). Earnings per share were €1.72 (Q3 2012: €1.06). “Our earnings continued improving in the third quarter, compared with the year to date and compared with the prior-year period. This shows that the high investments we have made were money well spent. We will continue to invest in products and production sites in order to secure the Group’s sustainable medium and long-term success,” stated Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. “We are continuing with the effective implementation of our growth offensives and efficiency programs. That is having an increasingly positive impact on our earnings and gives us a good starting position for the year 2014. We are also continuing to work with a clear focus on achieving our targets and we anticipate further earnings improvements in the future,” explained Bodo Uebber, Member of the Board of Management of Daimler AG for Finance & Controlling and Financial Services. The earnings improvement in the third quarter of 2013 was due in particular to the good development of unit sales by the automotive divisions and the increasing impact of the efficiency programs. Daimler Financial Services equaled its EBIT of the prior-year period. The special items affecting EBIT in the third quarter are shown in the table on page 10. Unit sales up by 13% compared with Q3 2012 In the third quarter of 2013, the Daimler Group sold 594,900 passenger cars and commercial vehicles worldwide, surpassing the prior-year total by 13%. The Daimler Group’s third-quarter revenue amounted to €30.1 billion, which is 5% higher than in the third quarter of last year. Adjusted for exchange-rate effects, revenue grew by 11%. The free cash flow of the industrial business amounted to €3.9 billion in the first nine months of 2013, including €2.2 billion from the sale of the remaining shares in EADS. In the third quarter, the cash flow of the industrial business amounted to €1.6 billion. Compared with December 31, 2012, the net liquidity of the industrial business increased by €1.1 billion to €12.6 billion. At the end of the third quarter of 2013, Daimler employed 276,320 people worldwide (end of Q3 2012: 275,451). Of that total, 167,727 were employed in Germany (end of Q3 2012: 166,888), 21,330 in the United States (end of Q3 2012: 21,930), 14,340 in Brazil (end of Q3 2012: 14,709) and 11,323 in Japan (end of Q3 2012: 11,337). The Group’s consolidated subsidiaries in China employed 1,882 people at the end of the third quarter (end of Q3 2012: 2,648). The decreased headcount in China resulted from the integration of the sales organizations for cars into a non-consolidated joint-venture company. Details of the divisions Mercedes-Benz Cars once again achieved a record level of unit sales in the third quarter of 2013. Total sales by the car division grew by 14% to 395,400 units. Third-quarter revenue grew by 8% to €16.5 billion, and EBIT of €1,200 million was significantly higher than the prior-year result (Q3 2012: €973 million). The division’s return on sales was 7.3% (Q3 2012: 6.4%). The development of earnings primarily reflects the ongoing growth in unit sales, especially in China, the United States and Western Europe. A major contribution came from the expanded range of compact cars. Earnings growth was achieved also as a result of better pricing. Furthermore, efficiency actions taken as part of the Fit for Leadership program had an increasingly positive impact on earnings. The changed model mix had a negative effect on earnings. There was an additional negative effect from expenses connected with product enhancements. Daimler Trucks’ third-quarter unit sales were 4% above the prior-year level at 124,500 vehicles. Revenue reached €8.0 billion (-1%). Exchange-rate movements, in particular the depreciation of the Japanese yen, had a significant negative impact on the division’s revenue. Adjusted for exchange-rate effects, revenue increased by 8%. The EBIT posted by Daimler Trucks of €522 million was higher than the €501 million achieved in the prior-year quarter. The division’s return on sales was 6.5% (Q3 2012: 6.2%). The development of earnings reflects a slight revival of unit sales. On the one hand, there was a market recovery in Brazil; on the other hand, there were positive effects from the business in Western Europe, partially resulting from vehicle purchases brought forward due to the upcoming introduction of Euro VI emission regulations in 2014. However, earnings were negatively affected by increased warranty expenses and exchange-rate effects. Furthermore, there were expenses of €8 million for workforce adjustments in the context of an optimization program in Germany and Brazil. The efficiency actions of the Daimler Trucks #1 program had an increasingly positive influence on earnings. Mercedes-Benz Vans increased its unit sales by 17% to 65,300 vehicles in the third quarter of 2013. Revenue of €2.3 billion was also significantly higher than in the prior-year period (Q3 2012: €2.1 billion). Mercedes-Benz Vans achieved third-quarter EBIT of €152 million (Q3 2012: €75 million). The division’s return on sales improved to 6.7% from 3.6% in the prior-year period. In a market environment that was still affected by weak demand and intense competition in Europe, unit sales by Mercedes-Benz Vans were significantly higher than in the third quarter of last year. In addition to the increased unit sales, better pricing also had a positive […]
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