Daimler AG (ticker: DAI) reports that net profit increased by 48% to €4.0 billion for the fiscal year 2020 while proposing a dividend of €1.35 per share (2019: €0.90). The Group’s total sales of passenger cars and commercial vehicles decreased by -15%, to 2.84 million (2019: 3.34 million). Revenue was down at €154.3 billion (2019: €172.7 billion), a reduction of 11%. Due to extensive cost and cash preservation action and good performances across all divisions, EBIT of the Daimler Group increased by 53% to €6.6 billion (2019: €4.3 billion).
Adjusted EBIT, reflecting the underlying business, was €8.6 billion down from €10.3 billion in 2019. The numbers are based on audited financial statements. The reporting structure and previous year’s figures have been adjusted to reflect the newly formed Group divisions. (read AutoInformed.com on Daimler to Spin-Off Daimler Truck into Separate Compan, Daimler Q3 Covid Results – Sales, Revenue Down. Earnings Up)
“Our financial results are significantly above market expectations reflecting substantial progress on cost-efficiencies. In addition, we have achieved a significant margin improvement based on strong product mix and pricing – especially in the second half of the year. We proved our ability to generate substantial cash flow and to drive the ongoing transformation on our own – even under the adverse circumstances of a pandemic,” claimed Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG.
During 2020, net profit improved to €4.0 billion (2019: €2.7 billion). Net profit attributable to the shareholders of Daimler AG amounted to €3.6 billion (2019: €2.4 billion), leading to an increase in earnings per share to €3.39 (2019: €2.22). At the Annual General Meeting on 31March 31, 2021 the Board of Management and the Supervisory Board will propose a dividend of €1.35 per share (2019: €0.90). Total payout will amount to €1.4 billion (2019: €1.0 billion).
“We are confident that we can maintain positive momentum if current market conditions prevail, accelerating our strategic plans and further enhancing our financial robustness. The intended separation of our industrial businesses is designed to unlock the full potential for Mercedes-Benz as the world’s pre-eminent luxury car business, committed to leading in electric drive and car software, and Daimler Truck as the world’s largest truck and bus producer and technology leader,” said Källenius.
Daimler plans to spin-off and list Daimler Truck as previously noted in AutoInformed. It is said that a significant majority stake in Daimler Truck will be distributed to Daimler shareholders. Daimler Truck will have a fully independent management, stand-alone corporate governance, including an independent Chairman of the Supervisory Board, and is targeted to qualify for listing on Germany’s blue-chip DAX index. The transaction and the listing of Daimler Truck on the Frankfurt stock exchange could be completed before year-end 2021.
In addition, it is also Daimler’s intention to rename itself as Mercedes-Benz at the “appropriate” time. All further details about the intended spin-off will be presented to shareholders at an extra-ordinary shareholder meeting in Q3 2021 in order to obtain their mandatory approval for the plan.
AutoInformed.com on Daimler
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- Daimler Confirms 2020 Group Sales and Revenue Will Decline
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- Daimler Facing Profit and Sales Declines Reorganizes
- Capital Punishment Day for Auto Workers at Daimler
- Death of the Diesel: Daimler Guilty of Selling Dirty Diesels in Germany – Pays $957,000,000 Fine Rather than Litigate