Author Topic: Preliminary Q2 2021 results above market expectations despite semiconductor shor  (Read 447 times)

Offline fasteddy

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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 semiconductor components. Daimler Trucks & Buses sales increased in almost all regions due to improved market conditions, which translated into higher profitability in the second quarter. In addition, the Daimler Trucks & Buses EBIT benefitted from strong pricing, higher aftersales business and positive, non-recurring valuation effects of around one hundred million euros. EBIT at Daimler Mobility benefitted from low cost of credit risk, a credit provision release of €120 million and improved funding costs.

In addition to the underlying operating performance, a strong cash conversion delivered a reported industrial free cash flow of €2,586 million in the second quarter, totaling an industrial free cash flow of €4,396 million in the first half of 2021.

Daimler Group EBIT, Mercedes-Benz Cars & Vans adjusted EBIT, Daimler Trucks & Buses Return on Sales (RoS) adjusted, Daimler Trucks & Buses adjusted EBIT, Daimler Mobility adjusted EBIT and Daimler's Industrial Free Cash Flow for the second quarter of 2021 are all significantly above market expectations.

“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. 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. 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”, stated Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG.

 

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