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Daimler FY20 Profit Climbs, Volume Down; Lifts Dividend; Sees Significantly Higher Results In FY21

German auto giant Daimler AG (DDAIF.PK) Thursday reported that its fiscal 2020 net profit attributable to the shareholders amounted to 3.6 billion euros, higher than last year's 2.4 billion euros. Earnings per share increased to 3.39 euros from prior year's 2.22 euros.

EBIT increased 53 percent to 6.6 billion euros from 4.3 billion euros a year ago with strong performances across all divisions. Adjusted EBIT, reflecting the underlying business, was 8.6 billion euros, compared to 10.3 billion euros a year ago.

The company said its financial results for 2020 were significantly better than expected amid COVID-19 challenges.

Revenue was 154.3 billion euros, down 11 percent from 172.7 billion euros last year.

Total unit sales of passenger cars and commercial vehicles decreased 15 percent to 2.84 million units from last year's 3.34 million units.

Further, the company said its Board of Management and the Supervisory Board will propose a dividend of 1.35 euros per share at the Annual General Meeting on March 31, compared to prior year's 0.90 euro.

Looking ahead, Daimler Group said it expects sales, revenues and EBIT in 2021 to be significantly above the prior-year's level. Although bottlenecks in the semiconductor industry will impact sales mainly in the first quarter it is currently anticipated that lost production volume can be compensated for by the end of the year.

Daimler assumes that the global economy will recover strongly in 2021.

Regarding the planned spin-off of Daimler Truck and its listing, the company said a significant majority stake in Daimler Truck will be distributed to Daimler shareholders. The transaction and the listing on the Frankfurt stock exchange is expected to be completed before year-end 2021.

In addition, it is also Daimler's intention to rename itself as Mercedes-Benz at the appropriate time.

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