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Daimler reports Q2 preliminary adjusted EBIT of $6.42 billion

Published 07/14/2021, 06:53 PM
Updated 07/15/2021, 08:31 AM
© Reuters. FILE PHOTO: The Daimler logo is seen before the Daimler annual shareholder meeting in Berlin, Germany, April 5, 2018. REUTERS/Hannibal Hanschke
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(Reuters) -Mercedes-Benz maker Daimler AG (DE:DAIGn) on Thursday reported preliminary adjusted group earnings before interest and tax (EBIT) of 5.42 billion euros ($6.42 billion) for the second quarter, with car and truck divisions beating analyst targets.

Mercedes-Benz Car and Van results were helped by pricing and cost discipline, helping to offset any impact from a global shortage of semiconductors. Adjusted EBIT for Mercedes-Benz cars and vans was 3.60 billion euros, versus consensus of 3.1 billion euros, it said.

Adjusted EBIT for Daimler (OTC:DDAIF) trucks and buses was 831 million euros, versus consensus of 680 million euros, the company said in a statement.

"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 benefited from strong pricing, higher after sales business and positive, non-recurring valuation effects of around 100 million euros," it said.

The overall adjusted EBIT of 5.4 billion euros topped expectations of 4.3 billion, it said.

Daimler's truck unit aims to cut costs and capital expenditure by 15% by 2025 and boost profit margins across all regions regardless of market conditions, it said in May.

The group's preliminary EBIT for the second quarter was 5.19 billion euros. In the second quarter of last year, the company reported an EBIT loss of 1.68 billion euros.

The company's chief financial officer, Harald Wilhelm, last month said Daimler was on track to spin off Daimler Truck, the world's largest truck and bus maker, by the end of the year.

Under the planned spin-off, a significant majority stake in Daimler Truck would be distributed to Daimler shareholders.

© Reuters. FILE PHOTO: The Daimler logo is seen before the Daimler annual shareholder meeting in Berlin, Germany, April 5, 2018. REUTERS/Hannibal Hanschke

Last month, the company also said it was cutting working hours at some plants as car makers suffered from a shortage of semiconductors.

($1 = 0.8448 euros)

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