Daimler Lifts 2020 Profit Outlook As Mercedes-Benz Margins Rebound

With improved pricinga and a fall in fixed costs, the adjusted return on sales on Mercedes-Benz Cars & Vans division rose to 9.4 per cent in the last quarter, up from 7 per cent a year earlier

By Reuters

1 mins read

Published on October 23, 2020

Highlights

German automaker Daimler raised its 2020 profit outlook on Friday as strong demand in China in the third quarter helped turn around margins at its Mercedes-Benz cars division. Benefiting from improved pricing and a fall in fixed costs, adjusted return on sales at the company's Mercedes-Benz Cars & Vans division rose to 9.4 per cent in the quarter, up from 7 per cent a year earlier and above the minus 1.5 per cent margin in the second quarter. Also Read: Daimler Chief Eyes China Growth As Trade Tensions Rise The car and truck maker said it now expected full-year earnings before interest and taxes (EBIT) to reach prior-year levels, compared with the previous expectation of a drop in earnings. The company's adjusted EBIT rose to 3.479 billion euros ($4.11 billion) in the quarter, up from 3.14 billion euros in the year-earlier period. However, quarterly deliveries of Mercedes Benz Cars and Vans were down 4 per cent as the COVID-19 pandemic continued to weigh on demand, prompting Daimler to reiterate that it expects group unit sales and revenue in 2020 to be significantly lower than the previous year.