Daimler AG officials gave a preview of the company’s second-quarter earnings scheduled for release next week, saying the results are tracking for a better-than-expected second quarter.
They noted earnings before interest and taxes, or EBIT, as well as the EBIT of its various divisions, including Mercedes-Benz Cars & Vans, Daimler Trucks & Buses and Daimler Mobility as well as the group’s industrial free cash flow are all significantly above market expectations.
For the quarter, Daimler Group said it earned 5.185 billion euros, or more than $6 billion. The consensus estimates among analysts was the Group would post EBIT of 4.117 billion euros, or $4.8 billion. The group noted in a preview of its earnings three-month period from April 1 to June 30.
The performance comes as the Daimler Group prepares to move ahead with plans to divide the company next fall into separate companies with their own stock listing. It also follows a quarter in which the group’s production was cut by shortages of semiconductors.
“We continue to deliver a strong financial performance in all divisions despite the ongoing low availability of semiconductors, which negatively impacted our production and sales in the second quarter,” said Ola Källenius, chairman of the board of management of Daimler AG and Mercedes-Benz AG.
Mercedes-Benz reports double-digit margins
“We were able to post double-digit margins at Mercedes-Benz Cars and Vans for the third quarter in a row, demonstrating the resilience of our business,” he said.
“The key to our success is our strong lineup of highly attractive vehicles which are increasingly becoming electric, combined with our relentless focus on profitable growth and tight cost control.”
Källenius said Mercedes-Benz Cars & Vans achieved strong results in the second quarter thanks to convincing products, favorable product mix, pricing and ongoing cost discipline. This was despite negative effects from the very limited availability of semiconductors and related components.
Daimler Trucks & Buses sales increased in almost all regions due to improved market conditions, which translated into higher profitability in the second quarter, he said.
Mercedes-Benz Cars & Vans expenses of 107 million euros or $127 million for legal proceedings and spent 59 million euros or $69 million for restructuring.