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Daimler AG Swings To Profit In Q2; Daimler Truck Spin-Off On Track

Daimler AG (DDAIF.PK) reported a turnaround to profit for the second quarter, reflecting strong revenue growth.

The company's Q2 net profit was €3.70 billion compared to a loss of €1.91 billion incurred a year ago. On a per share basis, earnings totaled €3.36 compared to a loss of €1.87 in the prior year period.

Revenue for the quarter grew by 44% to €43.5 billion from the previous year's €30.2 billion. Total unit sales increased by 36% to 736,400 passenger cars and commercial vehicles versus 541,800 reported last year.

"We achieved a strong performance across all divisions in the second quarter. At Mercedes-Benz Cars and Vans, we posted double-digit margins for the third quarter in a row and thus demonstrated the resilience of our business - despite the persistently low availability of semiconductors. The entire industry is currently struggling with longer delivery times, which unfortunately also affect our customers. We are doing what we can to minimize the impact. Given the high demand for our vehicles, delivery to our customers has top priority," stated Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG.

In addition, the company noted that it intends to distribute a significant majority stake in Daimler Truck to Daimler shareholders in an effort to generate value for its shareholders and to raise its profitability by creating two pure-play companies, one focused on cars and vans with the other on trucks and buses.

The transaction and the listing of Daimler Truck on the Frankfurt Stock Exchange are on track and expected to be completed before year-end 2021. The project is currently in the preparatory and auditing phase. At an extraordinary general meeting in autumn, Daimler shareholders will have to approve this historic strategic step, the company stated.

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