In its preliminary Q1 results announcement, Daimler says favourable sales momentum at Mercedes-Benz Cars driven by all major regions, especially China, strongly supported the product mix and pricing in the first quarter 2021. It said results were ‘significantly above market expectations’.
Daimler says it was able to benefit from this development thanks to convincing product substance combined with significant fixed cost reductions.
Daimler Group EBIT, Mercedes-Benz Cars & Vans adjusted EBIT, Daimler Trucks & Buses Return on Sales (RoS) adjusted, Daimler Mobility adjusted EBIT and Daimler’s Industrial Free Cash Flow for the first quarter of 2021 were all significantly above market expectations, the company said.
In addition to the underlying operating performance effective Working Capital Management delivered better than expected Industrial Free Cash Flow in Q1 2021 including the net of expenses for legal proceedings, expenses for restructuring and income from M&A transactions.
Ola Kallenius, Chairman of the Board of Management of Daimler AG and of Mercedes-Benz AG said: “We continue to execute on our ambitions in a very encouraging market environment. Our pipeline with high-tech luxury EVs is packed. The launch of the EQS is just the start. Our systematic efforts to lower the breakeven point of the company are becoming increasingly visible.”
The following stated figures for the first quarter 2021 are preliminary and unaudited: Daimler Group EBIT: EUR5,748 million (consensus: EUR4,964 million) adjusted EBIT: EUR4,970 million (consensus: EUR3,987 million) Industrial Free Cash Flow: EUR1,810 million (consensus: EUR1,102 million) Industrial Free Cash Flow adjusted: EUR2,832 million (consensus: EUR1,802 million) Net Industrial Liquidity: EUR20.1 billion (year-end 2020: EUR17.9 billion) Mercedes-Benz Cars & Vans EBIT: EUR4,078 million (consensus: EUR3,543 million) adjusted EBIT: EUR3,841 million (consensus: EUR3,055 million) Return on Sales (RoS) adjusted: 14.3 % (consensus: 11.7 %) Daimler Trucks & Buses EBIT: EUR1,041 million (consensus: EUR1,026 million) adjusted EBIT: EUR518 million (consensus: EUR488 million) Return on Sales (RoS) adjusted: 6.0 % (consensus: 5.3 %) Daimler Mobility EBIT: EUR744 million (consensus: EUR569 million) adjusted EBIT: EUR691 million (consensus: EUR579 million) Return on Equity (RoE) adjusted: 18.7 % (consensus: n.a.)
The preliminary results include the following adjustments affecting EBIT: Mercedes-Benz Cars & Vans Expenses of EUR75 million for legal proceedings Expenses of EUR292 million for restructuring Income of EUR604 million from M&A transactions (completion of cellcentric JV) Daimler Trucks & Buses Expenses of EUR88 million for restructuring Income of EUR611 million from M&A transactions (completion of cellcentric JV) Daimler Mobility Expenses of EUR36 million for restructuring Income of EUR89 million from M&A transactions The full quarterly results will be published on April 23rd, 2021.