- Further improvement in EBIT from ongoing business to Euro 0.6
billion in fourth quarter of 2009 - Net loss of euro 2.6 billion
for 2009 (2008: net profit of euro 1.4 billion) - No dividend for
2009 due to net loss - Group revenue of euro 78.9 billion (2008:
euro 98.5 billion) - Free cash flow from industrial business of
euro 2.7 billion (2008: minus euro 3.9 billion) STUTTGART, Germany,
Feb. 18 /PRNewswire-FirstCall/ -- Daimler AG (stock exchange symbol
DAI) today presented the preliminary and unaudited results of the
Group and its divisions for the year 2009. After a difficult first
half of the year, Daimler succeeded in continuously improving its
EBIT in the third and fourth quarters. EBIT from ongoing business
increased again to plus euro 0.6 billion in the fourth quarter of
2009, resulting in full-year EBIT of minus euro 1,513 million
(2008: plus euro 2,730 million). The Group's net loss was
significant at euro 2,644 million (2008: plus euro 1,414 million).
Earnings per share amounted to minus euro 2.63 (2008: plus euro
1.41). Due to the net loss, the Board of Management recommends to
the Supervisory Board that no dividend should be distributed for
the year 2009. This decision is solely a reflection of the course
of business in 2009 and is not related to the Group's expected
business development this year. "Last year brought many great
challenges also for Daimler," stated Dr. Dieter Zetsche, Chairman
of the Board of Management of Daimler AG and Head of Mercedes-Benz
Cars, at the annual press conference. "But as the year progressed,
we made the Group significantly more efficient and laid the
foundations not only to overcome the upheaval affecting our
industry, but to lead from a strong position. We are emerging from
the crisis with plenty of torque." Outlook 2010 The world economy
is still in a period of transition at the beginning of 2010. On the
one hand, the worst of the most severe economic crisis of the
post-war period has now been passed; on the other hand, there is
very little hard evidence that a self-sustaining, lasting upswing
has actually started. Although there are some signs of global
economic recovery, there is no reason to assume that the crisis is
over. However, the ongoing solid growth of emerging markets such as
China and India is exerting a positive influence. According to
current estimates, worldwide demand for automobiles will grow this
year in a bandwidth of between 3% and 4% compared with crisis year
2009. Growth in the upper premium automobile segments is likely to
be stronger than in the market as a whole because these segments
hardly profited from governments' incentive programs last year, so
no significant related effects are to be expected in 2010.
Worldwide demand for commercial vehicles should also grow again
moderately after the severe crisis of last year. In the NAFTA
region, a market recovery of 10% to 15% is anticipated for medium
and heavy-duty trucks after three consecutive years of significant
decline. In Europe, the development of demand for light-duty trucks
could be slightly better than in 2009, but demand for commercial
vehicles above 6 tons will probably remain similar to the
prior-year level. On the basis of its attractive and competitive
range of automobiles, Mercedes-Benz Cars assumes it will be able to
defend its market position even with the continuation of difficult
economic conditions. We therefore aim to continue the positive
development of the second half of 2009 and to increase unit sales
in 2010. Daimler Trucks and Mercedes-Benz Vans also anticipate
rising unit sales. The expected growth in unit sales by Daimler
Buses is likely to be driven by the South American markets. Daimler
Financial Services anticipates stable development of its worldwide
contract volume in the automotive business. On the basis of
assumptions concerning the development of automotive markets and
the divisions' planning, the Daimler Group therefore expects to
increase its total unit sales in 2010. Following a significant
decrease in 2009, the Daimler Group assumes that its revenue will
rise again this year, but will still be significantly lower than in
2008. The growth will probably be driven by all the automotive
divisions. In a very challenging economic environment in 2010,
Daimler expects to post Group EBIT of more than euro 2.3 billion
from its ongoing business. This will be the result of the market
success of new products, a moderate upward development of the most
important markets, and intensified efforts to increase efficiency.
The divisions' EBIT expectations for 2010: -- Mercedes-Benz Cars
anticipates EBIT of more than euro 1.5 billion. -- Daimler Trucks
expects to post EBIT of approximately euro 200 million. --
Mercedes-Benz Vans anticipates EBIT in the region of euro 250
million. -- Daimler Buses expects EBIT of euro 180 million. --
Daimler Financial Services assumes it will be able to improve its
EBIT to at least euro 350 million. -- In the reconciliation of the
total for the divisions to Group EBIT, Daimler anticipates a charge
of approximately euro 200 million. Financial year 2009 The main
reason for the Group's unsatisfactory profitability in 2009 is that
vehicle unit sales fell in all segments due to the global economic
crisis. However, the decline in earnings was significantly
alleviated by measures taken by the Group at an early stage to
adjust costs in an amount of euro 5.3 billion, as well as by
further efficiency enhancements in the context of the optimization
programs already running. EBIT in the reporting period was
additionally reduced by charges related to optimizing and
repositioning the business operations of the subsidiaries
Mitsubishi Fuso Truck and Bus Corporation (euro 245 million) and
Daimler Trucks North America (euro 95 million). The decline in
earnings at Daimler Financial Services was primarily due to the
increased cost of risk. An additional charge of euro 100 million
was incurred at Daimler Financial Services on the disposal and
valuation of available-for-sale non-automotive assets. Furthermore,
lower interest rates for the discounting of non-current provisions
and the significantly increased annual contribution to the German
Pension Security Association led to expenses of euro 388 million
and euro 164 million. Chrysler had a negative impact on Group EBIT
of euro 294 million in 2009, mainly resulting from the agreement
concluded in the second quarter, in the context of which Daimler
also disposed of its remaining 19.9% of Chrysler shares. Special
items affecting earnings in the past two years are detailed in the
table on pages 12 and 13. Daimler sold a total of 1.6 million
vehicles in 2009 (2008: 2.1 million). Group revenue decreased by
20% to euro 78.9 billion; adjusted for exchange-rate effects, there
was a decrease of 21%. The free cash flow of the industrial
business was significantly positive at plus euro 2.7 billion
despite the difficult economic situation (2008: minus euro 3.9
billion). The main reason for the increase in the free cash flow
was the development of inventories and trade receivables as well as
investments in property, plant and equipment, which offset the
negative effects from the divisions' earnings. The free cash flow
was reduced, however, by contributions to pension plans and a
reduction in trade payables. The net liquidity of the industrial
business increased by euro 4.2 billion to euro 7.3 billion. In
recognition of the committed efforts of the workforce in a
difficult environment, the Board of Management has decided to make
a special payment in 2010 of euro 500 to the employees of Daimler
AG who are paid according to salary and wage-tariff agreements.
Daimler adjusted its personnel capacities to the significantly
lower levels of demand in 2009. The total number of persons
employed by the Daimler Group worldwide decreased to 256,407 as of
December 31, 2009 (Dec. 31, 2008: 273,216). Of that total, 162,565
were employed in Germany (2008: 167,753). The number of apprentices
and trainees was 9,151 (2008: 9,603). Despite the difficult
environment, the Daimler Group invested euro 6.6 billion in
research and development and property, plant and equipment in 2009
(2008: euro 8.0 billion). Daimler intends to play an active part in
shaping the technological transformation facing the automotive
industry with pioneering innovations also in the future. The Group
therefore maintained a high level of research and development
expenditure of euro 4.2 billion last year (2008: euro 4.4 billion).
The main areas of work were new, extremely fuel-efficient and
environmentally friendly drive technologies, in line with the "Road
to Emission-free Mobility" initiative. The Group is working on
optimizing conventional drive technologies and enhancing their
efficiency through hybridization, as well as on electric vehicles
with fuel-cell drive and battery power. Another focus is on new
safety technologies. In the years 2010 and 2011, Daimler plans to
spend a total of euro 9.7 billion on its research and development
activities. euro 6.1 billion of that total will be spent at the
Mercedes-Benz Cars division. In 2009, the Group invested euro 2.4
billion on property, plant and equipment (2008: euro 3.6 billion);
euro 1.7 billion of that total was invested in Germany (2008: euro
2.5 billion). Due to the new requirements placed on the products
and the need to offer sustainable solutions for the mobility of the
future, a total of euro 8.1 billion will be invested in property,
plant and equipment in the years 2010 and 2011. Above all at
Mercedes-Benz Cars and Daimler Trucks, the planned investment in
property, plant and equipment will be significantly higher than in
the prior years. The divisions in detail Mercedes-Benz Cars,
comprising the brands Mercedes-Benz, Maybach and smart, sold
1,093,900 vehicles in an extremely difficult market environment
(2008: 1,273,000). The Mercedes-Benz brand shipped 974,700 vehicles
(2008: 1,125,900). Following a very successful prior year, unit
sales of the smart fortwo decreased to 113,900 units in the third
year of the current model (2008: 139,000). Revenue fell by 14% to
euro 41.3 billion as a result of the decline in unit sales. After a
difficult first half of the year, the division's performance
improved continuously as the year progressed. EBIT of plus euro 608
million was achieved in the fourth quarter, resulting in full-year
EBIT of minus euro 500 million, compared to plus euro 2,117 million
in 2008. The sharp fall in earnings was primarily due to the
significant weakening of demand for cars and the resulting drop in
unit sales. This development was only partially offset by the
successful launch of the new E-Class, which in many markets only
became fully available in the second half of the year. Charges on
earnings also resulted from continued intense competition and
pressure on prices in automobile markets, from a less favorable
model mix and from expenditure for research and development. The
average CO2 emissions of the cars sold by Daimler in the European
Union were reduced by 13 grams to 160 grams per kilometer in 2009.
By the year 2012, Mercedes-Benz Cars wants to reduce the average
CO2 emissions of its new-car fleet in the EU to below 140 g/km. At
Daimler Trucks, unit sales fell to 259,300 vehicles due to the
global financial and economic crisis and the biggest worldwide
decline in demand for transport services of the last 50 years
(2008: 472,100). The sales decline affected all the division's core
markets (Europe, the United States, Latin America and Japan).
Revenue decreased by 36% to euro 18.4 billion. Markets have
stabilized at a low level in the second half of the year. Daimler
Trucks' EBIT of minus euro 1,001 million was significantly lower
than the very strong result of the prior year (2008: plus euro
1,607 million). Lower unit sales of commercial vehicles had a
substantial impact on the development of earnings in 2009. The
comprehensive repositioning of the business operations of
Mitsubishi Fuso Truck and Bus Corporation and of Daimler Trucks
North America resulted in charges of euro 340 million. The
division's operating result excluding special reporting items
amounted to minus euro 179 million in the fourth quarter.
Mercedes-Benz Vans was also unable to avoid the general market
development and sold 165,600 units last year. Sales of Sprinter,
Vario, Viano, and Vito models were thus significantly lower than
the very high figure of 287,200 units sold in 2008. Revenue
decreased by 34% to euro 6.2 billion. Despite the drastic fall in
unit sales, the division continuously improved its performance as
the year progressed. EBIT of plus euro 126 million was achieved in
the fourth quarter, resulting in full-year EBIT of plus euro 26
million (2008: euro 818 million). With sales of 32,500 complete
buses and bus chassis (2008: 40,600) and revenue of euro 4.2
billion (2008: euro 4.8 billion), Daimler Buses remained by far the
leading manufacturer of buses over eight tons gross vehicle weight
in 2009. The decline in unit sales was largely a result of
significantly weaker demand in Mexico and Latin American markets.
The division achieved EBIT of euro 183 million (2008: euro 406
million). The reduction in earnings was primarily due to the
worldwide slump in demand. Daimler Financial Services' business
development in the year 2009 was also affected by the global
financial and economic crisis. Due to lower vehicle unit sales, new
business fell by 15% to euro 25.1 billion. The weaker new business
and the sale of parts of the non-automotive portfolio in North
America led to an 8% decrease in worldwide contract volume to euro
58.3 billion. The division achieved EBIT of just better than
breakeven in 2009 at euro 9 million (2008: euro 677 million). This
earnings trend was primarily caused by increased expenses related
to higher credit risk. There was also a charge of euro 100 million
on the disposal and valuation of non-automotive assets. The
"reconciliation" item primarily reflects Chrysler-related items and
Daimler's proportionate share in the results of its equity-method
investment in EADS. As a result of the agreement entered into in
the second quarter of 2009 between Daimler, Chrysler, Cerberus and
the Pension Benefit Guaranty Corporation, in the context of which
the Group disposed of its remaining 19.9% interest in Chrysler,
total expenses of euro 378 million were incurred. The legal
transfer of Chrysler's international sales activities to Chrysler
LLC and the valuation of Chrysler-related assets resulted in gains
totaling euro 84 million. Daimler's share in the profit of EADS
amounted to euro 88 million (2008: euro 177 million). Possible
charges have not yet been taken into consideration arising from the
negotiations running between EADS and the ordering countries
concerning the financing of the A400M military aircraft. The Annual
Report and other information connected with the Group's financial
statements for the year 2009 are expected to be published on the
Internet on March 2. The Annual Report will be available in printed
form as of the middle of March. Special items affecting earnings in
the past two years are shown in the following table: Amounts in
millions of EUR 2009 2008
--------------------------------------------------------------
Mercedes-Benz Cars Reassessment of residual values - (465)
Adjustment of a pension benefit plan - 84
--------------------------------------------------------------
Daimler Trucks Repositioning of Mitsubishi Fuso Truck (245) -
Repositioning of Daimler Trucks North America (95) (233)
Adjustments of a pension benefit plan - 29
--------------------------------------------------------------
Daimler Financial Services Sale of non-automotive assets (100) -
--------------------------------------------------------------
Reconciliation Sale of real estate (Potsdamer Platz) - 449 Gain
relating to the sale of shares in EADS - 130 Equity-method result
Chrysler - (1,390) Other losses relating to Chrysler (294) (1,838)
-------------------------------------------------------------- New
management model - (247)
--------------------------------------------------------------
Special Items per Quarter of 2009 Q1 Q2 Q3 Q4 Amounts in millions
of EUR
---------------------------------------------------------------------
Daimler Trucks Realignment of Mitsubishi Fuso Truck and Bus
Corporation 0 (204) (13) (28) Repositioning of Daimler Trucks North
America (45) (13) 10 (47)
---------------------------------------------------------------------
Daimler Financial Services Sale of non-automotive assets (28) 6 3
(81)
---------------------------------------------------------------------
Reconciliation Other Gains/(expenses) related to Chrysler 40 (387)
48 5
---------------------------------------------------------------------
The figures in this document are preliminary and have not yet been
approved by the Supervisory Board nor audited by the external
auditors. Further information on Daimler is available on the
internet at: http://media.daimler.com/ This document contains
forward-looking statements that reflect our current views about
future events. The words "anticipate," "assume," "believe,"
"estimate," "expect," "intend," "may," "plan," "project," "should"
and similar expressions are used to identify forward-looking
statements. These statements are subject to many risks and
uncertainties, including a lack of further improvement or a renewed
deterioration of global economic conditions, in particular a
renewed decline of consumer demand and investment activity in
Western Europe or the United States, or a downturn in major Asian
economies; a continuation or worsening of the tense situation in
the credit and financial markets, which could result in a renewed
increase in borrowing costs or limit our funding flexibility;
changes in currency exchange rates or interest rates; the ability
to continue to offer fuel-efficient and environmentally friendly
products; a permanent shift in consumer preference towards smaller,
lower margin vehicles; the introduction of competing,
fuel-efficient products and the possible lack of acceptance of our
products or services, which may limit our ability to adequately
utilize our production capacities or raise prices; price increases
in fuel, raw materials and precious metals; disruption of
production due to shortages of materials, labor strikes, or
supplier insolvencies; a further decline in resale prices of used
vehicles; the effective implementation of cost-reduction and
efficiency-optimization programs at all of our segments, including
the repositioning of our truck activities in the NAFTA region and
in Asia; the business outlook of companies in which we hold an
equity interest, most notably EADS; changes in laws, regulations
and government policies, particularly those relating to vehicle
emissions, fuel economy and safety, the resolution of pending
governmental investigations and the outcome of pending or
threatened future legal proceedings; and other risks and
uncertainties, some of which we describe under the heading "Risk
Report" in Daimler's most recent Annual Report and under the
headings "Risk Factors" and "Legal Proceedings" in Daimler's most
recent Annual Report on Form 20-F filed with the Securities and
Exchange Commission. If any of these risks and uncertainties
materialize, or if the assumptions underlying any of our
forward-looking statements prove incorrect, then our actual results
may be materially different from those we express or imply by such
statements. We do not intend or assume any obligation to update
these forward-looking statements. Any forward-looking statement
speaks only as of the date on which it is made. About Daimler
Daimler AG is one of the world's most successful automotive
companies. With its divisions Mercedes-Benz Cars, Daimler Trucks,
Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services,
the Daimler Group is one of the biggest producers of premium cars
and the world's biggest manufacturer of commercial vehicles with a
global reach. Daimler Financial Services provides its customers
with a full range of automotive financial services including
financing, leasing, insurance and fleet management. The company's
founders, Gottlieb Daimler and Carl Benz, made history with the
invention of the automobile in the year 1886. As an automotive
pioneer, Daimler continues to shape the future of mobility. The
Group applies innovative and green technologies to produce safe and
superior vehicles which fascinate and delight its customers. With
the development of alternative drive systems, Daimler is the only
vehicle producer investing in hybrid drive, electric motors and
fuel-cell systems, with the goal of achieving emission-free
mobility in the long term. This is just one example of how Daimler
willingly accepts the challenge of meeting its responsibility
towards society and the environment. Daimler sells its vehicles and
services in nearly all the countries of the world and has
production facilities on five continents. Its current brand
portfolio includes, in addition to the world's most valuable
automotive brand, Mercedes-Benz, the brands smart, Maybach,
Freightliner, Western Star, Fuso, Setra, Orion and Thomas Built
Buses. The company is listed on the stock exchanges of Frankfurt,
New York and Stuttgart (stock exchange symbol DAI). In 2009, the
Group sold 1.6 million vehicles and employed a workforce of more
than 256,000 people; revenue totaled euro 78.9 billion and EBIT
amounted minus euro 1.5 billion. Positive Quarter-to-Quarter
Development in 2009 Daimler Group Q1 Q2 Q3 Q4 amounts in EUR 2009
2009 2009 2009
---------------------------------------------------------------------
Revenue, in millions 18,679 19,612 19,310 21,323 EBIT, in millions
(1,426) (1,005) 470 448 EBIT, excl. special items, in millions
(1,393) (407) 422 599 Net profit (loss), in millions (1,286)
(1,062) 56 (352) Earnings (loss) per share (EPS) (1.40) (0.99) 0.04
(0.34) Employees (Dec. 31) 263,819 257,427 256,857 256,407
---------------------------------------------------------------------
EBIT by Divisions Q1 Q2 Q3 Q4 in millions of EUR 2009 2009 2009
2009
---------------------------------------------------------------------
Mercedes-Benz Cars (1,123) (340) 355 608 Daimler Trucks (142) (508)
(127) (224) Mercedes-Benz Vans (91) (10) 1 126 Daimler Buses 65 49
23 46 Daimler Financial Services (167) 79 101 (4) Reconciliation 32
(275) 117 (104)
---------------------------------------------------------------------
Revenue by Divisions Q1 Q2 Q3 Q4 in millions of EUR 2009 2009 2009
2009
---------------------------------------------------------------------
Mercedes-Benz Cars 9,067 10,568 10,238 11,445 Daimler Trucks 4,918
4,217 4,388 4,837 Mercedes-Benz Vans 1,291 1,481 1,601 1,842
Daimler Buses 904 1,103 1,024 1,207 Daimler Financial Services
3,150 3,108 2,864 2,874 Reconciliation (651) (865) (805) (882)
---------------------------------------------------------------------
Sales Q1 Q2 Q3 Q4 in units 2009 2009 2009 2009
---------------------------------------------------------------------
Daimler Group 332,252 391,540 386,461 441,038 Mercedes-Benz Cars
231,193 287,243 271,917 303,552 Daimler Trucks 65,405 54,134 66,071
73,718 Mercedes-Benz Vans 28,834 41,871 40,123 54,748 Daimler Buses
6,820 8,292 8,350 9,020
---------------------------------------------------------------------
The figures in this document are preliminary and have not yet been
approved by the Supervisory Board nor audited by the external
auditor. Financial Figures 2009 compared to 2008 Daimler Group 2009
2008 Change amounts in EUR 09/08
---------------------------------------------------------------------
Revenue, in millions 78,924 98,469 -20% EBIT, in millions (1,513)
2,730 - EBIT, excl. special items, in millions (779) 6,211 - Net
profit (loss), in millions (2,644) 1,414 - Earnings (loss) per
share (EPS) (2.63) 1.41 - Dividend proposed - 0.60 - Employees
(Dec. 31) 256,407 273,216 -6%
---------------------------------------------------------------------
EBIT by Divisions 2009 2008 Change in millions of EUR 09/08
---------------------------------------------------------------------
Mercedes-Benz Cars (500) 2,117 - Daimler Trucks (1,001) 1,607 -
Mercedes-Benz Vans 26 818 -97% Daimler Buses 183 406 -55% Daimler
Financial Services 9 677 -99% Reconciliation (230) (2,895) +92%
---------------------------------------------------------------------
Revenue by Divisions 2009 2008 Change in millions of EUR 09/08
---------------------------------------------------------------------
Mercedes-Benz Cars 41,318 47,772 -14% Daimler Trucks 18,360 28,572
-36% Mercedes-Benz Vans 6,215 9,479 -34% Daimler Buses 4,238 4,808
-12% Daimler Financial Services 11,996 11,964 +0% Reconciliation
(3,203) (4,126) +22%
---------------------------------------------------------------------
Sales 2009 2008 Change in units 09/08
---------------------------------------------------------------------
Daimler Group 1,551,291 2,072,876 -25% Mercedes-Benz Cars 1,093,905
1,273,013 -14% Daimler Trucks 259,328 472,074 -45% Mercedes-Benz
Vans 165,576 287,198 -42% Daimler Buses 32,482 40,591 -20%
---------------------------------------------------------------------
The figures in this document are preliminary and have not yet been
approved by the Supervisory Board nor audited by the external
auditor. DATASOURCE: Daimler Corporate Communications CONTACT: Han
Tjan, +1-212-909-9063 or Marc Binder, +49-711-17-41349 Web Site:
http://www.daimler.com/
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