Preliminary results for the second quarter 2020 above market expectations –positive Industrial Free Cash Flow

Preliminary results for the second quarter 2020 above market expectations –positive Industrial Free Cash Flow
16.
July 2020
Stuttgart

Stuttgart (Germany) - Following a better than expected market recovery and a strong June performance, Daimler Group adjusted EBIT, Mercedes-Benz Cars & Vans adjusted EBIT and Daimler’s Industrial Free Cash Flow for the second quarter of 2020 are all above market expectations.

Daimler’s deployment of extensive cash preservation measures plus the favorable demand-driven development of working capital combined to deliver positive Industrial Free Cash Flow in the second quarter.

“This has been a complex quarter. We took proactive decisions on costs and spending and focused intensely on working capital management. We were then able to seize opportunities allowed by the market recovery, thanks to our compelling product line-up. We also announced key strategic partnerships in electrification and vehicle software during the quarter that position us well for the future. But, there is still much to do. Our systematic efforts to lower the breakeven of the company by reducing costs and adjusting capacity will need to continue,” said Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG.

The following stated figures for the second quarter 2020 are preliminary and unaudited:

  • Industrial Free Cash Flow: €685 million (consensus: minus €2,106 million)

 

  • Net Industrial Liquidity: €9.5 billion (Q1 2020: €9.3 billion)

 

  • Daimler Group EBIT: minus €1,682 million (consensus: minus €2,069 million); adjusted EBIT: minus €708 million (consensus: minus €1,719 million)

 

  • Mercedes-Benz Cars & Vans EBIT: minus €1,125 million (consensus: minus €1,400 million); adjusted EBIT: minus €284 million (consensus: minus €1,050 million)

 

  • Daimler Trucks & Buses EBIT: minus €756 million (consensus: minus €823 million);

adjusted EBIT: minus €747 million (consensus: minus €823 million)

 

  • Daimler Mobility EBIT: €205 million (consensus: €258 million);

adjusted EBIT: €313 million (consensus: €258 million)

 

The preliminary results include the following adjustments affecting EBIT:

Mercedes-Benz Cars & Vans:

  • Expenses of €687 million for initiated streamlining of global production network and capacity adjustments connected to our operations in Hambach, Tuscaloosa and Aguascalientes.

 

  • Expenses of €53 million for legal proceedings and related measures

 

Daimler Mobility:

  • Expenses of €105 million for adjustment of YOUR NOW Holding

 

Mercedes-Benz Cars & Vans, Daimler Trucks & Buses, Daimler Mobility, Reconciliation:

  • Expenses of €129 million in total for ongoing efficiency programs.

 

The full quarterly results will be published on July 23, 2020.

EBIT, adjusted EBIT and Industrial Free Cash Flow are defined on pp. 64 and 73 of the Daimler Annual Report 2019.

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Daimler AG Headquarter Stuttgart, Germany
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