Daimler AG ETR: DAI today (Friday) reported a third-quarter net profit increase, whilst revenues at the German car manufacturer declined.
Net profit for Q3 increased to 2.05 billion euros ($2.42 billion) from EUR1.72 billion for the same period last year.
Revenue for the Stuttgart-based maker of Mercedes-Benz dropped to EUR40.28 billion from EUR43.27 billion.
The Group’s total unit sales fell by 8% to 772,700 cars and commercial vehicles (Q3 2019: 839,300).
EBIT (earnings before interest and taxes) rose by 14% to €3,070 million (Q3 2019: €2,690 million). Adjusted EBIT, reflecting the underlying business, was €3,479 million (Q3 2019: €3,142 million) whilst net profit was €2,158 million (Q3 2019: €1,813 million).
Net liquidity of the industrial business was €13.1 billion (end of Q2 2020: €9.5 billion). The free cash flow of the industrial business was at €5,139 million (Q3 2019: €2,819 million). The adjusted free cash flow of the industrial business was €5,345 million (Q3 2019: €2,931 million).
Daimler AG ETR: DAI Comes Out of a Slump
Daimler appears to have navigated the biggest slump since World War II. The slump, caused by the pandemic has become a rebound in China, its largest market.
Harald Wilhelm, Member of the Board of Management of Daimler AG, responsible for Finance & Controlling/Daimler Mobility said:
“Our strong product portfolio and the positive market recovery drove us to a good performance. We have successfully pushed forward our comprehensive efforts regarding cost control and cash management. With this momentum, we are on track to make our business more weatherproof. However, the transformation of Daimler is a long-distance race. We are keeping up the pace with focus and full discipline.”
Harald Wilhelm
Daimler AG ETR: DAI stock soared on the news, rising as much as 2.5% in early Frankfurt trading. By the close of the day’s trading the company with approximately 300,000 employees, closed the day with its stock valued at EUR 48.40, up 1.03%.
