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Daimler revs up profits on record sales
Photo: DPA

Daimler revs up profits on record sales

Published: 07 Feb 2013 14:26 GMT+01:00
Updated: 07 Feb 2013 14:26 GMT+01:00

German automaker Daimler said Thursday that its net profit rose by 8.0 percent to €6.495 billion ($8.8 billion) in 2012 on the back of record unit sales and revenues.

"The past financial year was overall a strong year for Daimler. We achieved new records for unit sales and revenue at both the group and Mercedes-Benz Cars," said chief executive Dieter Zetsche.

Revenues rose by 7.0 percent to €114.3 billion and the group sold a total 2.198 million vehicles worldwide, 4.0 percent more than in the previous year.

"Notwithstanding our success... it is a fact that we did not reach our own targets for earnings and profitability," Zetsche cautioned.

In fact, underlying profits, as measured by earnings before interest and tax (EBIT), slipped by 2.0 percent to €8.615 billion. EBIT was actually down in all divisions, but Mercedes-Benz Vans saw the biggest drop of 35 percent while underlying profit at Mercedes-Benz Cars fell by 15 percent to €4.389 billion.

"To ensure that our future growth is even more profitable, we have implemented detailed measures in all divisions that will further increase our efficiency," CEO Zetsche said.

In the fourth quarter alone, net profit soared by 32 percent to €2.359 billion and EBIT rose by 7.0 percent to €2.321 billion on a 3.0-percent increase in revenues to €29.83 billion.

Fourth-quarter units sales were little changed at 597,041 vehicles.

Daimler said it would propose an unchanged dividend of €2.20 per share for shareholders for 2012. Looking ahead, Daimler said it assumed group revenue would "continue growing in the years 2013 and 2014."

In regional terms, Daimler said it is pencilling in above-average growth rates in emerging markets and in North America.

Daimler said it expected developments in major markets to at first remain weak in the first half of 2013, and "therefore anticipates a weaker development of earnings in the first half of the year compared with 2012."

However, with the launch of new models and the increasing effects of efficiency measures, "earnings are expected to improve in the second half of 2013 compared with the level of the first half," it said.

"On the basis of the anticipated recovery in the second half of the year, Daimler currently assumes that group EBIT from the ongoing business in 2013 will reach the magnitude of the prior year," Daimler said.

AFP/mry

The Local (news@thelocal.de)

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Your comments about this article

09:58 February 8, 2013 by Berlin fuer alles
Thank you again to the taxpayers of Greece, Portugal, Italy and Ireland for paying for the cheap Euromark in order to boost German exports.
11:19 February 8, 2013 by Tonne
I'm sure that there must be some finance-savvy people out there who can explain why, with unit sales in the fourth quarter remaining little changed at the same time as net profit soaring by 32 percent , there is not some massaging of the figures here. Or did they reduce the number of their overpaid VPs then? ;)
07:29 February 12, 2013 by honeybeee
In the passed 12 months of 2012 , German car industry is no doubtly a success example to show the whole world, the Schaeffler Group expects to continue growing faster than the market, it no longer expects to meet the previous annual revenue growth target of more than 5 percent because of the volatile financial situation in the whole year of 2012. Instead, the company now adjusted practically to anticipate revenue growth of approximately 4 percent for 2012 as a whole. Their EBIT margin in excess of 13 percent for 2012, thus meeting the target for the year as a whole remains unchanged and job done , bravo ~~~~~~~~~~~!!!!!!!
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