Daimler AG (ticker symbol: DAI) today reported results for the second quarter ended June 30, 2019. Here you find all important results regarding Daimler Financial Services.
The Group’s total unit sales declined by 1% to 822,000 passenger cars and commercial vehicles (Q2 2018: 833,000). Revenue was €42.7 billion (Q2 2018: €40.8 billion), an increase of 5%. Also adjusted for positive exchange-rate changes, revenue was slightly higher than the prior-year level. The Daimler Group posted second-quarter EBIT of minus €1.6 (Q2 2018: plus €2.6) billion.
At Daimler Financial Services, new business was almost flat at €18.4 billion in the second quarter (Q2 2018: €18.3 billion). Revenue was 9% higher at €7.1 billion (Q2 2018: €6.6 billion). The division’s EBIT amounted to €431 million (Q2 2018: €66 million), an increase of 553% compared to the prior year. At 12.5%, return on equity was above the figure of 2.1% in the prior-year period.
At Group level, Daimler expects unit sales in 2019 at the previous year number and revenue slightly above the prior year. The renamed Daimler Mobility (former Daimler Financial Services) anticipates a slight increase in revenue.
Daimler expects Group EBIT in 2019 to be significantly below the prior-year level. Daimler Mobility expect the following returns in 2019:
- Daimler Financial Services: a return on equity of 17% to 19%.
Based on the measures taken, Daimler expects EBIT and free cash flow of the industrial business to improve significantly by the end of the fiscal year compared with the first half. Nevertheless, the anticipated development of earnings in the automotive business as described above will partially have a negative impact. The ongoing high upfront expenditures for new products and technologies as well as the costs for »Project Future« to implement the new Group structure will be a burden. Under these conditions, Daimler expects the free cash flow of the industrial business in financial year 2019 to be significantly lower than in the previous year.
Further Information: Daimler.com