Daimler 1Q Net Profit, Revenue Fell -- Earnings Review
April 29 2020 - 8:18AM
Dow Jones News
By Jessica Sier
Daimler AG reported first-quarter results on Wednesday. Here's
what you need to know:
AFTER TAX PROFIT: After-tax profit for the quarter fell to 168
million euros ($182.1 million) from EUR2.15 billion a year
earlier.
NET PROFIT: Net profit attributable to the group's shareholders
was EUR94 million, compared with EUR2.10 billion a year
earlier.
REVENUE: Revenue fell 6% to EUR37.22 billion.
WHAT WE WATCHED:
-CHINA RECOVERY: Daimler's 40 Chinese plants are producing again
and the company said supply chains are stable. "If and when [a
market rebound] comes we are ready to go," said Ola Kaellenius,
Daimler CEO.
-LIQUIDITY: Daimler has invested heavily in new technology in
recent quarters, though the need for cash to cover the economic
damage caused by the coronavirus is on the mind of investors.
Negative cash flow in Daimler's industrial businesses grew to
EUR2.3 billion in the first quarter.
-FINCOS: Daimler said EUR448 million in loan loss provisioning
at its captive financial services business in the first quarter was
taken to reflect expected credit losses. A so-called finco is a
finance subsidiary set up solely to offer auto loans to buyers of a
particular dealership or car company. "We have a normal run rate of
actual credit losses," said Harald Wilhelm, Daimler's CFO.
-CO2 COMPLIANCE: Daimler won't request any changes to the CO2
targets. Mr. Kaellenius said Daimler is committed to compliance,
even if achieving fleet-emission targets is a difficult task. "For
the first quarter, so far so good," he told analysts.
Write to Jessica Sier at jessica.sier@wsj.com
(END) Dow Jones Newswires
April 29, 2020 08:03 ET (12:03 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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