Daimler lifts 2020 profit outlook as Mercedes-Benz margins rebound

Daimler, however, expects the group unit sales and revenue in 2020 to be significantly lower than the previous year.
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| Updated on: 23 Oct 2020, 11:53 AM
File photo: Daimler AG expects to report a near 70% plunge in a key first-quarter earnings figure. (REUTERS)
File photo: Daimler AG expects to report a near 70% plunge in a key first-quarter earnings figure. (REUTERS)

German automaker Daimler raised its 2020 profit outlook on Friday as strong demand in China in the third quarter helped turn around margins at its Mercedes-Benz cars division.

Benefiting from improved pricing and a fall in fixed costs, adjusted return on sales at the company's Mercedes-Benz Cars & Vans division rose to 9.4% in the quarter, up from 7% a year earlier and above the minus 1.5% margin in the second quarter.

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The car and truck maker said it now expected full-year earnings before interest and taxes (EBIT) to reach prior-year levels, compared with the previous expectation of a drop in earnings.

(Also read | Daimler warns hard Brexit would hurt even without a UK plant)

The company's adjusted EBIT rose to 3.479 billion euros ($4.11 billion) in the quarter, up from 3.14 billion euros in the year-earlier period.

However, quarterly deliveries of Mercedes Benz Cars and Vans were down 4% as the Covid-19 pandemic continued to weigh on demand, prompting Daimler to reiterate that it expects group unit sales and revenue in 2020 to be significantly lower than the previous year.

First Published Date: 23 Oct 2020, 11:53 AM IST
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