‘We cannot be satisfied with this’

Daimler AG has reported below-par figures for the first quarter of 2019, with unit sales falling by four per cent to 773,800 vehicles.

Revenue amounted to €39.7bn, while first-quarter EBIT of €2,802m, which is well below the prior-year figure of €3,335m. Net profit weakened slightly to €2,149m.

Earnings at all the automotive divisions decreased significantly compared with the first quarter of last year. Earnings at Mercedes-Benz Cars were lower than in the prior-year quarter, due in particular to lower unit sales and changes in the sales structure.

There was a negative impact on earnings at Daimler Trucks from additional costs, mainly resulting from higher raw-material prices and supply-chain bottlenecks. Mercedes-Benz Vans and Daimler Buses posted negative earnings. At the van division, expenses in connection with the adjustment of production capacities as well as upfront expenditure for new technologies and products resulted in a loss for the period. At Daimler Buses, delivery delays due to a changed internal certification process for coaches and intercity buses had a negative impact.

On the other hand, Daimler Financial Services’ EBIT increased substantially in the first quarter. This was mainly due to the merger of the mobility services of Daimler and the BMW Group, which had a positive effect on earnings of €718 million.

Dr. Dieter Zetsche, chairman of the board of management of Daimler AG and head of Mercedes-Benz Cars, said, ‘We cannot and will not be satisfied with this – as expected – moderate start to the year. We now have to work hard to achieve our targets for 2019.

‘Based on our sales planning and the countermeasures we have already initiated, we are confident that we will achieve those targets. In the first few months of this year, we have consistently implemented further elements of our strategy and initiated several important projects: our cooperation at smart with Geely, the development of a joint platform for autonomous driving, and the merger of the mobility services with those of the BMW Group.’