The auto concern Daimler AG has published a press release on the company’s financial results for the last quarter of this year (from July to September). The figures showed that the company’s net profit had decreased by 0.42 billion euros compared to the last year’s results. In absolute terms: the net profit of the German auto giant for the third quarter was 2.18 billion euros. Thus, the fall was equal to 16%. One of the reasons for the drop in profits is the company’s losses happened due to the cars recall from the sale, and rather high costs for the restructuring carried out in the third quarter.
Investors should not be afraid of a decrease in profits, as the automaker showed the excellent revenue for the quarter (an absolute record was set for the number of cars sold). In accurate numbers, the figures for the third quarter are as follows:
– 824100 vehicles were sold
– sales have increased by 9%, the revenue has increased by 6% (to 40.81 billion euros)
– by subdivisions: sales of cars have increased by 6%, buses – by 17%, trucks – by 30%, vans – by 9%.
Most of all, the group of the companies sold cars under the brands Mercedes and Smart – almost 600 thousand have been sold. The figures were significantly ahead of the experts’ forecasts.
The German autoconcern is actively preparing for the release of new economy cars. The company has spent on the research and development 0.4 billion euros more than last quarter (only 2.3 billion euros).
In addition, a significant amount was invested in real estate – one and a half billion euros.
Despite the fact that EBIT (earnings before interest and taxes) of the auto concern has fallen by 14% for the quarter, the company’s management is confident that the annual operating profit indicator will please the shareholders and investors with the growth in comparison with the last year’s indicators.
We recall that Daimler is one of the largest European automakers with the total staff of about 300 thousand employees.
The material was prepared with the participation of Andrey Majorov,
a leading analyst of the brokerage company CT Trade