As a result of the COVID-19 pandemic, market expectations for Daimler’s first quarter 2020 appear to show a large degree of variation. Against this background Daimler announces the following:
Preliminary figures for the first quarter 2020 are in line with our earlier communicated trend:
The following two effects that are included in todays’ preliminary figures do not appear to be reflected in current market expectations:
All stated figures are preliminary and unaudited. Given the continuing effects of the COVID-19 pandemic, Daimler’s Board of Management, as already disclosed in our ad-hoc-announcement on March 17, 2020, continues to believe that the original forecast for the financial year 2020, as disclosed in connection with annual report 2019, is no longer valid.
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. However, we do now expect the Group’s total unit sales for 2020 to be below the prior year, with lower unit sales at each of Mercedes-Benz Cars, Mercedes-Benz Vans, Daimler Trucks and Daimler Buses. For Daimler Mobility we expect for the financial year 2020 a lower new business volume than in 2019.
As a result we expect the group revenue for the financial year 2020 to be below the prior year. Given the anticipated market development and the assessment of our divisions, we expect the group EBIT for the financial year 2020 to be below prior year.
The adjusted return on equity of Daimler Mobility for the financial year 2020 will not reach the prior year level. The decline in the results will lead to a decline in our Industrial Free Cash Flow for 2020.
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. The full quarterly results will be published on April 29, 2020. We will give further information on the current situation and how we are managing it on this day.
EBIT, adjusted EBIT and adjusted Return on Sales/Return on Equity are defined on pp. 64, 73 and 342 of the Daimler Annual Report 2019.
Daimler and ProfiBusiness.world
April 22, 2020