Daimler AG Starts Year Strongly, Sales Rise in Q1

UTC by Oluwapelumi Adejumo · 3 min read
Daimler AG Starts Year Strongly, Sales Rise in Q1
Photo: Depositphotos

The Q1 revenue of Daimler came to €41 billion, which indicates an increase of close to €4 billion from the sales of the previous year.

Germany-based Daimler AG (OTCMKTS: DMLRY) has had a very strong Q1 which made a good start to the year. This was made known via its first quarterly review where the firm declared that the sales of its cars and commercial vehicles had increased to 728,600 which translates to a growth of 13 percent. According to the firm, in the first quarter of 2020, the firm sold 644,300 vehicles.

Per the release, it was stated that the increase in its sales was due to the recovery of the world’s economy from the debilitating pandemic that grounded most of the world’s activities to a halt. 

The report also went on to state that the Q1 revenue of Daimler came to €41 billion, an increase of close to €4 billion from the sales of the previous year. This strong start resulted in “an EBIT bounce to €5,748 million, that of last year was €617 million. While it adjusted EBIT, which reflected the underlying business, also multiplied to €4,970 million, in comparison, it was €719 million for the first quarter of 2020.

The Chief Financial Officer of Daimler AG, Harald Wilhelm, says “deliveries, revenues and profits increased significantly, particularly thanks to tailwinds in China, a strong product mix and favorable pricing, supported by industrial performance enhancements and cost control.” He went on to add that the firm was looking forward to increasing its electric car line-up and at the same time improving its margins. In his words “after this promising start, we are very confident that we can keep up the pace to improve our margins on a sustainable basis and at the same time expand our electric vehicle line-up.”

Shareholders of the company are also going to be enjoying a rise in the profit accrued to them. It was stated that the net profit of the first quarter stood at €4,373 million, with the shareholders liable to €4,290 million. This resulted in an increase in earnings per share to €4.01.

Divisions of the company like Mercedes-Benz Cars & Vans saw sales increase by 15 percent to over 600,000 –538,900 vehicles were sold and 88,400 vans— and its revenue rose to €26.9 billion. On the other hand, the Trucks & Buses division showed an increase in unit sales of 4% to 101,300 vehicles in the first quarter, and its revenue matched that of the previous year at €8.7 billion.

The group went on to express optimism that its “Group unit sales, revenues and EBIT in 2021 to be significantly above the prior year’s level.” It also introduced two new companies that raise would help to raise “its profitability.” One of these companies would be focused on cars and vans while the other would be geared towards trucks and buses.

Read more business news on Coinspeaker.

Business News, Market News, News
Related Articles