Daimler Continues Its Growth With Increased Unit Sales in Second Quarter – EBIT of Euros 2.6 Billion Despite Negative Factors
The
"The automotive industry and therefore we too have many challenges to overcome. That's why it's important that we systematically implement our strategy," stated
Free cash flow and liquidity
In the first six months of 2018, the free cash flow of the industrial business amounted to
Compared with
"The second quarter featured various external factors that had a significant impact on our earnings," said
In
Workforce
At the end of the second quarter of 2018, the
Details of the divisions
Unit sales of 590,700 vehicles by
In second quarter of 2018, the division's EBIT of
Daimler Trucks' unit sales of 123,900 vehicles were 6% higher than in the second quarter of last year (Q2 2017: 116,400). The sales volume in the
The division's second-quarter EBIT of
In the second quarter of 2018,
Second-quarter unit sales by Daimler Buses of 7,500 units were at the level of the prior-year period. In the EU30 region, sales of 2,200 complete buses and bus chassis of the Mercedes-Benz and Setra brands were also in the magnitude of the second quarter of last year. Despite undisputed market leadership, sales of 700 units in
Daimler Buses' EBIT of
In the second quarter of 2018, the division achieved EBIT of
The reconciliation of the divisions' EBIT to Group EBIT comprises gains at the corporate level and the effects on earnings of eliminating intra-group transactions between the divisions. Items at the corporate level resulted in expenses of
Investments in the future
Outlook for the divisions
On the basis of the assumptions on the development of the markets important for the Group and of the divisions' current assessments,
Due to challenges in the supply chain as well as a longer certification process than usual for a number of models in some international markets it will come to temporary suspensions in the availability of vehicles.
Daimler Trucks assumes that its total unit sales in the year 2018 will be significantly higher than in the previous year. This is largely due to the significant recovery of some important markets. In the
The Daimler Buses division continues to expect its total unit sales in 2018 to be significantly above the prior-year level. It is assumed that unit sales in the EU30 region will increase perceptibly. After the significant growth in unit sales in
Outlook for
Based on the generally positive development of unit sales,
In late
As reported in the ad-hoc announcement of
Due to several factors, some temporary restrictions in the availability of vehicles of
On the basis of these effects as well as expected market developments and the current assessments of the divisions,
The individual divisions have the following expectations for EBIT in the year 2018:
-
- Daimler Trucks: significantly above the prior-year level,
-
- Daimler Buses: in the prior-year magnitude and
-
Despite a further increase in advance expenditure for new products and technologies, the free cash flow of the industrial business should be significantly higher than in 2017 and also higher than the dividend distribution in 2018. It must be taken into consideration, however, that the free cash flow of the industrial business in 2017 was reduced by an extraordinary contribution of
In order to achieve the ambitious growth targets, the already very high investment in property, plant and equipment will be slightly increased in the year 2018 (2017:
With research and development activities, a total volume slightly above last year's spending of
Against the backdrop of further efficiency improvements in the context of the medium- and long-term programs for the structural improvement of business processes, the
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