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Daimler Warns On Revenue, Says Cautiously Optimistic; To Ramp Up Worldwide Production

German auto giant Daimler AG (DDAIF.PK) announced Wednesday that first-half unit sales of the Mercedes-Benz brand fell nearly 19 percent to about 870,000 cars as a result of the COVID-19 pandemic.

Looking ahead, Daimler expects negative adjusted Group EBIT and a negative free cash flow in the industrial business in the second quarter. Also, as forecasted in the first quarter revenue will decrease significantly. Meanwhile, the development of revenue in recent weeks, particularly in the passenger car business, gives cause for cautious optimism.

Further, the company said it plans to ramp up its worldwide production subject to demand, amid successful crisis management of COVID-19 pandemic. The company had proactively countered the drop in demand caused by the pandemic by suspending production in March, April and May, and by introducing short-time work.

In the first half, truck sales fell 38 percent to around 150,000 vehicles due to the pandemic and the already weaker market environment, especially in Europe and North America. However, order intake shows positive signs in recent weeks in almost all key markets.

At Daimler Mobility, contract volume on June 30 was 2 percent lower at about 155 billion euros, compared to June 2019.

At the virtual Annual Shareholders' Meeting on Wednesday, the company said its Board of Management and Supervisory Board will propose to the shareholders a dividend of 0.90 euros per share for the past financial year, compared to prior year's 3.25 euros.

Further, the Supervisory Board proposed Timotheus Höttges, Chairman of the Board of Management of Deutsche Telekom AG, Bonn, for election to the Supervisory Board.

The company noted that Paul Achleitner's term of office as a member of the Board representing the shareholders expires at the end of the Annual Meeting.

Regarding its vehicles, the company said the next generation of the S-Class, which will be presented in autumn, represents the future of Mercedes-Benz. The market launch of the S-Class will be followed in 2021 by the EQS, the first fully electric luxury sedan from Mercedes-Benz based on an all-electric architecture.

In Germany, Daimler shares were trading at 38.04 euros, up 1.09 percent.

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