Daimler’s net profit climbs to £1.87 billion in the third quarter.
The German automaker reports revenues of £36.66 billion for the third quarter.
Daimler is forecasting an unchanged annual EBIT compared with the prior year.
In its report on Friday, Daimler AG (ETR: DAI) said that net profit in the third quarter of the fiscal year was higher than in the same quarter of last year. Revenue in the third quarter had decreased on an annual basis.
Daimler closed the regular meeting on Friday with a decrease of approximately 1.5%. The company’s shares are now trading at £44 per share, compared with a significantly lower price of £20 per share in March due to the COVID-19 interruptions. The German automaker started the year at £45.50 per share. Learn more about why stock market prices rise and fall.
Daimler reports revenue of 36.66 billion pounds in the third quarter
Daimler generated a net profit of £1.87 billion in the third quarter, compared with £1.57 billion in the prior-year quarter. The German premium car manufacturer’s revenue decreased to £36.66 billion in the final quarter of the year, compared with £39.38 billion in the prior-year quarter.
At the beginning of July this year, Daimler announced that it would sell its plant in Hambach in order to rationalize worldwide production. Daimler CEO Ola Kallenius had also warned against aggressive wage cuts in order to safeguard finances in the midst of COVID-19.
The owner of Mercedes-Benz said that its EBIT (earnings before interest and taxes) in the third quarter was 2.79 billion pounds, compared with a lower figure of 2.45 billion pounds last year. Adjusted EBIT, he added, was £3.17 billion in the third quarter compared with £2.86 billion in the third quarter of 2019.
According to Daimler, there were signs of recovery in the third quarter, primarily due to cost-cutting measures. It also said that markets improved across the board in the third quarter after months of stagnation due to the coronavirus pandemic, which has so far infected more than 42 million people worldwide and caused more than 1.1 million deaths.
Daimler’s forecast for the full year
For the full year, Daimler expects EBIT to remain unchanged year-on-year. According to the company, annual revenue and unit sales in the year 2020 are likely to decrease significantly compared with the prior year.
At the beginning of October, Daimler committed to minimize fixed costs by more than 20% in the next five years.
On the stock market, Daimler’s performance was only slightly positive last year, with an annual increase of approximately 8%. At the time of writing, the German automotive group has a market capitalization of 47 billion pounds.