Daimler Expects Lower Earnings, Revenue This Year After Tough 1Q
April 23 2020 - 1:49AM
Dow Jones News
By Pietro Lombardi
Daimler AG (DAI.XE) expects revenue and earnings to fall this
year due to the negative effects of the coronavirus pandemic, which
has dealt a hard blow to the company in the first quarter.
The German car maker said late Wednesday that it expects
earnings before interest and taxes to fall this year compared with
2019. Revenue, industrial free cash flow and vehicle sales are also
seen declining, with the company's Mercedes-Benz cars,
Mercedes-Benz vans, Daimler trucks and Daimler buses businesses
expected to post lower unit sales, it said.
"The effect of the Covid-19 pandemic on customer demand, supply
chains and vehicle production cannot be assessed with the usual
degree of detail and certainty, making the re-evaluation of the
forecast for the fiscal year 2020 complex," it said.
The pandemic has already hit the company's business in the first
three months of the year, preliminary figures show, with earnings
plunging from the same period a year earlier.
According to preliminary figures, the Group's Ebit in the first
quarter fell to 617 million euros ($668 million) from EUR2.80
billion. Adjusted Ebit also fell sharply to EUR719 million from
EUR2.31 billion.
Earnings declined across its Mercedes-Benz cars and vans,
Daimler trucks and buses, as well as Daimler Mobility
operations.
"Having implemented a comprehensive set of cash protection
measures and having increased our financial flexibility, we are
confident that we are well positioned to manage the business, both
during and after the Covid-19 pandemic," it said.
The company will release first-quarter results and an update on
the situation on April 29.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
April 23, 2020 01:34 ET (05:34 GMT)
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