German automaker Daimler AG (DDAIF.PK) reported that its first-quarter net profit declined to 564 million euros from last year's 1.425 billion euros, with earnings per share decreasing to 0.50 euros from the previous year's 1.26 euros.
The decline in earnings in the first three months of this year was a reflection of both a shift in the regional structure of unit sales and a changed model mix at Mercedes-Benz Cars and Mercedes-Benz Vans, as well as a decrease in unit sales by Daimler Trucks. At Daimler Buses, increased unit sales led to an improved operating profit, while the earnings posted by Daimler Financial Services remained almost constant.
The company's first-quarter revenue of 26.1 billion euros was 3% lower than in the first quarter of last year. Adjusted for changes in currency exchange rates, there was a decrease of 1.5%.
The company sold 501,600 cars and commercial vehicles worldwide in the quarter, compared to 502,100 cars and commercial vehicles worldwide in the prior year quarter.
Worldwide demand for cars should grow in the range of 2% to 4% this year, driven primarily by the ongoing strong growth in demand in the United States and the further expanding Chinese market. However, as a result of the continuing economic weakness, a decline is again expected in the Western European market. Demand will thus continue to move around a 20-year low.
Daimler Trucks expects a slight increase in unit sales in the full year.
Mercedes-Benz Vans expects to achieve growth in unit sales in full-year 2013.
Mercedes-Benz Cars anticipates full-year EBIT below the level of 2012. Daimler Trucks and Mercedes-Benz Vans expect to post EBIT from the ongoing business in the magnitude of the prior year, while Daimler Buses should improve on its negative earnings of 2012.
In 2014 and the following years, Daimler expects an EBIT improvement for all its automotive divisions and for the Group as a whole. Daimler Financial Services anticipates a stable development of earnings.
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