Daimler Q3 Profit Climbs, Now Sees Flat EBIT In FY20; Stock Up
(RTTNews) - Shares of Daimler AG were gaining around 2 percent in the morning trading in Germany after the auto giant reported Friday higher profit in its third-quarter, despite weakness in revenues and sales volume.
Looking ahead, the company projects that the positive momentum in the third quarter from market and cost measures would continue in the fourth quarter.
Further, Daimler now expects Group EBIT for full year 2020 at the prior-year level, compared to previous expectation of a decline.
For the year, Daimler expects group unit sales and group revenue in 2020 to be significantly lower than in the previous year. The significant unit-sales reductions recorded in the first nine months due to the COVID-19 pandemic will only be partially offset by the end of the year.
The outlook assumes that economic conditions in the most important markets continue to normalize and in particular that no further setbacks occur as a result of the COVID-19 pandemic.
For the third quarter, net profit rose 19 percent to 2.16 billion euros or 1.92 euros per share from last year's 1.81 billion euros or 1.61 euros per share.
EBIT for the third-quarter increased 14 percent to 3.07 billion euros from 2.69 billion euros in the prior year. Adjusted EBIT, reflecting the underlying business, was 3.48 billion euros, up from 3.14 billion euros a year ago. Mercedes-Benz Cars & Vans division reported higher adjusted EBIT and margin.
According to the company, the key figures reflected a good performance based on improving markets and strong products, combined with diligent cost discipline and extensive cash-preservation measures.
Quarterly revenue, meanwhile, slipped 7 percent to 40.28 billion euros from 43.27 billion euros in the previous year. Total unit sales for the quarter decreased 8 percent to 772,700 cars and commercial vehicles from prior year's 839,300 units.
Unit sales by the Mercedes-Benz Cars & Vans division decreased 4 percent to 673,400 vehicles, and Daimler Trucks & Buses division's unit sales fell 26 percent to 99,300 vehicles.
In Germany, Daimler shares were trading at 48.85 euros, up 1.97 percent.
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