Daimler sees higher full year profit despite lower unit volume

Daimler device revenue in Q3 2021 fell twenty five% yr on yr to 577,800 automobiles (Q3 2020: 772,seven hundred) due predominantly to world wide source constraints.

Team earnings was flat at EUR40.1bn (EUR40.3bn) but group EBIT rose to EUR3,579m (EUR3,070m).

Adjusted EBIT was also up at EUR3,611m (EUR3,479m) as was net profit of EUR2,573m (EUR2,158m).

“Despite significantly reduce output and revenue due to the semiconductor scarcity, earnings remained at the [2020] amount,” the automaker stated in a statement.

“Group EBIT increased many thanks to improved product or service blend, earnings high quality and a limited grip on set fees. Need for all items remains solid in all marketplaces.”

Revenue by Mercedes-Benz Vehicles & Vans fell 30% to 471,four hundred automobiles in the 3rd quarter from 673,four hundred in Q3 2020.

“The financial ailments for globally demand from customers for cars are most likely to continue being favorable in the course of the rest of the yr,” Daimler extra.

“It remains tricky to deliver an exact forecast on how the source problem will proceed to produce. Daimler assumes that strained source chains and bottlenecks for vital elements will proceed to have a appreciable effects on globally vehicle output also in the fourth quarter of the yr [but] assumes in the fourth quarter an improved semiconductor source problem as opposed with Q3, inspite of limited visibility and superior volatility. The overriding structural scarcity of semiconductors is envisioned to continue being an issue in 2022 but should enhance as opposed to 2021.”

The automaker now expects entire yr group earnings and EBIT “to be drastically higher than the amount of the previous year” but the globally semiconductor scarcity will have an affect on device revenue in the fourth quarter, so entire yr quantity will be reduce than in 2020.