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Daimler achieves EBIT of €917 million in first quarter of 2013

        Daimler achieves EBIT of €917 million in first quarter of 2013

PR Newswire

STUTTGART, Germany, April 24, 2013

STUTTGART, Germany, April 24, 2013 /PRNewswire/ --

  oNet profit of €564 million (Q1 2012: €1,425 million)
  oTotal unit sales of 501,600 vehicles at prior-year level
  oGroup revenue of €26.1 billion (Q1 2012: €27.0 billion)
  oGrowth in unit sales and revenue anticipated for full-year 2013
  oGroup EBIT from the ongoing business in 2013 expected to be below the
    magnitude of the prior year
  oSignificant improvements expected for the coming quarters due to planned
    new models, the increasing impact of the efficiency programs and probable
    market developments

Daimler AG (stock-exchange symbol DAI) achieved earnings below the prior-year
level in the first three months of 2013. The Daimler Group posted
first-quarter EBIT of €917 million (Q1 2012: €2,098 million). Net profit
amounted to €564 million (Q1 2012: €1,425 million). Earnings per share
amounted to €0.50 (Q1 2012: €1.26).

(Logo: http://photos.prnewswire.com/prnh/20080409/NYW017LOGO )

"In the first three months of this year, many markets developed worse than
expected for economic reasons, especially in Western Europe. Nonetheless, we
maintained our unit sales and revenue almost at the levels of the prior-year
quarter and gained market share in many segments," explained Dr. Dieter
Zetsche, Chairman of the Board of Management of Daimler AG and Head of
Mercedes-Benz Cars, with regard to business developments in the first quarter.

"The response to our new products such as the CLA and the E-Class is
excellent, and at Daimler Trucks, our successful product offensive is largely
completed with the new Arocs and the new Atego. On the basis of the new
products, the ongoing efficiency programs and our assumptions for future
market developments, we expect earnings in the second half of this year to be
higher than in the first half, due in particular to the launch of the new
S-Class," continued Dr. Zetsche.

"Daimler is now in the middle of the most comprehensive growth offensive in
its history. To these ends, we are investing large amounts in products,
technologies and markets, which, in combination with the generally weak
markets, led to a moderate start to the year 2013 in terms of earnings. But
due to the stimulus from new products and the effects of the ongoing
efficiency programs, we naturally intend to improve significantly in the
coming quarters," explained Bodo Uebber, Member of the Board of Management of
Daimler AG for Finance & Controlling and Financial Services.

The decline in earnings in the first three months of this year is a reflection
of both a shift in the regional structure of unit sales and a changed model
mix at Mercedes-Benz Cars and Mercedes-Benz Vans, as well as a decrease in
unit sales by Daimler Trucks. At Daimler Buses, increased unit sales led to an
improved operating profit, while the earnings posted by Daimler Financial
Services remained almost constant.

The compounding of non-current provisions and effects from the reduction in
discount rates led to charges of €47 million in the first quarter of this year
(Q1 2012: €170 million). There was an opposing impact from slightly positive
exchange-rate effects.

The special items shown in the table on page 10 affected EBIT in the first
quarters of 2013 and 2012.

Group revenue at the prior-year level

In the first quarter of 2013, Daimler sold 501,600 cars and commercial
vehicles worldwide, and was thus close to the prior-year level (Q1 2012:
502,100).

Daimler's first-quarter revenue of €26.1 billion was 3% lower than in the
first quarter of last year. Adjusted for changes in currency exchange rates,
there was a decrease of 1.5%.

The free cash flow of the industrial business amounted to minus €1.2 billion,
primarily due to ongoing high expenditure of €1.6 billion for investment in
property, plant and equipment and intangible assets. The net liquidity of the
industrial business amounted to €10.0 billion at March 31, 2013.

At the end of the first quarter of 2013, Daimler employed 274,555 people
worldwide (end of Q1 2012: 274,127). Of that total, 166,265 were employed in
Germany (Q1 2012: 168,017), 21,702 in the United States (Q1 2012: 21,520),
14,622 in Brazil (Q1 2012: 14,737) and 11,242 in Japan (Q1 2012: 11,344). The
consolidated subsidiaries in China employed 1,743 persons at the end of the
first quarter (Q1 2012: 2,269). The headcount changes in China result from the
transition of the sales organizations for cars into a non-consolidated joint
venture. In addition, employees in sales functions in South Africa, who were
previously allocated to the Mercedes-Benz Cars division, are now allocated to
the sales organization.

The divisions in detail

Mercedes-Benz Cars posted yet another high level of unit sales in the first
quarter of 2013. Total sales by the car division increased to 341,500 units
(Q1 2012: 338,300). First-quarter revenue fell by 6% to €14.1 billion. The
division's EBIT of €460 million was significantly lower than in the first
quarter of last year (Q1 2012: €1,230 million). Return on sales was 3.3% (Q1
2012: 8.2%).

Earnings reflect a shift in the regional sale structure and a changed model
mix. Furthermore, EBIT was reduced by expenses for the enhancement of our
products' attractiveness and capacity expansion, as well as advance
expenditure for new technologies and vehicles. Exchange-rate effects were
slightly positive.

Unit sales by Daimler Trucks decreased by 6% in the first quarter to 101,400
vehicles and revenue amounted to €7.0 billion (minus 5%). The division's EBIT
of €116 million was lower than in the prior-year period (Q1 2012: €376
million). Return on sales was 1.7% (Q1 2012: 5.1%).

Earnings were affected by the overall negative development of unit sales and
revenue, resulting from weak demand in some core markets. Earnings were
reduced also by expenses for the development of business in India and China,
product adjustments especially in the NAFTA region and Europe, and higher
warranty costs.

Unit sales by Mercedes-Benz Vans increased slightly in the first quarter of
2013 to 52,600 vehicles (Q1 2012: 51,200), despite the difficult market
environment in Western Europe. Revenue decreased slightly to €2.0 billion (Q1
2012: € 2.1 billion). The division achieved EBIT of €81 million (Q1 2012: €167
million) and its return on sales fell accordingly to 4.1%, from 8.0% in the
first quarter of last year.

In a market environment featuring restrained demand and intense competition in
the European markets, Mercedes-Benz Vans' unit sales in the first quarter of
2013 were slightly higher than in the prior-year period. Earnings decreased
significantly, however, mainly due to changes in the product mix and the
regional sales structure. Advance expenditure for new products, including the
launch of the Sprinter Classic in Russia, additionally reduced earnings.

In the first quarter of 2013, Daimler Buses increased its worldwide unit sales
by 23% to 6,000 buses and chassis as a result of rising demand for bus chassis
in Latin America. The business with complete buses in Western Europe was below
the prior-year level. Revenue rose by 3% to €751 million; however, the changed
model mix following the repositioning of the North American business system
had a dampening effect on revenue growth. The division's EBIT amounted to
minus €31 million (Q1 2012: minus €105 million) and its return on sales was
minus 4.1% (Q1 2012: minus 14.4%).

Compared with the previous year, EBIT rose as a result of increased unit
sales. Daimler Buses achieved significantly higher shipments of bus chassis,
especially in Latin America. Business in Europe developed disparately,
however: While demand for city buses recovered somewhat, Daimler Buses
recorded lower unit sales of coaches. Exchange-rate effects and the initiated
efficiency measures had a positive impact on earnings. Expenditure for the
repositioning of the European business system decreased substantially to €4
million (Q1 2012: €36 million).

The business of Daimler Financial Services continued to develop positively in
the first quarter. Worldwide, some 253,000 new leasing and financing contracts
with a total value of €8.6 billion were concluded, representing growth of 4%
compared with the first quarter of 2012. Total contract volume of €81.7
billion at the end of the first quarter was 2% higher than at the end of 2012.
Adjusted for the effects of currency translation, contract volume increased by
1%. The division's EBIT of €314 million was lower than in the first quarter of
last year (Q1 2012: €344 million).

This earnings development was primarily due to lower interest margins and
normalizing credit risk costs. As an opposing effect, the increased contract
volume impacted positively on earnings.

The reconciliation of the divisions' EBIT to Group EBIT comprises our
proportionate share of the results of our equity-method investment in EADS,
other gains and losses at the corporate level, and the effects on earnings of
eliminating intra-Group transactions between the divisions.

Daimler's share of the net profit of EADS in the first quarter of 2013
amounted to €34 million (Q1 2012: €133 million). The decrease in investment
income was also due to the reduction of our equity interest in EADS following
the sale of a block of shares in December 2012. The reconciliation also
includes expenses at the corporate level of €91 million (Q1 2012: €35
million). The elimination of intercompany transactions in the first quarter of
2013 resulted in income of €34 million (Q1 2012: expense of €12 million).

Outlook

According to current estimates, worldwide demand for cars should grow in the
range of 2% to 4% this year, driven primarily by the ongoing strong growth in
demand in the United States and the further expanding Chinese market. However,
as a result of the continuing economic weakness, a decline is again expected
in the Western European market. Demand will thus continue to move around a
20-year low. The German market cannot detach itself from this development and
is expected to fall significantly short of the previous year's level. A
decline is expected also for the Japanese market compared with the previous
year's level, which was unusually high as a result of government incentives
for car buyers.

According to the current status, global demand for medium-duty and heavy-duty
trucks is expected to grow perceptibly in 2013. However, this depends very
decisively on the development of the world's biggest market, China, which
should experience a perceptible recovery in demand, although the start of the
year proved to be below expectations. Demand in North America should stabilize
in the coming months, but from today's perspective, Daimler anticipates market
contraction of up to 5%. In view of the continued weak economic environment,
the Group expects a drop of approximately 5% for the European truck market.
Market volume in Japan could be up to 5% below the prior-year level, whereby
the possible effects of the Japanese government's new economic stimulus
package are still difficult to assess. A moderate recovery and market growth
of as much as 10% are expected in Brazil, thanks to the improved economic
outlook and favorable financing conditions. The Russian market has already
returned to near-pre-crisis levels and is expected to grow again moderately in
the year 2013. On the other hand, a drop in demand for trucks is expected in
India due to the continued below-average economic momentum.

On the basis of the divisions' planning, Daimler anticipates another increase
in its total unit sales in the year 2013.

Mercedes-Benz Cars is consistently moving ahead with its "Mercedes-Benz 2020"
offensive. Numerous model changes and new products should ensure that the
division achieves yet another record for unit sales in the year 2013. The new
models in the high-volume compact car segment are likely to make a major
contribution to sales growth. After the successful start of the
A-Class and B-Class, the four-door CLA coupe came on the market as the third
model based on the new compact car architecture in mid-April 2013. The
extensively revised new E-Class sedan and station wagon have also been
available at Mercedes-Benz sales and service centers and dealerships since
April. As of June 2013, the new E-Class coupes and convertibles will also
provide added sales momentum. The electrically driven, locally emission-free
super sports car SLS AMG Coupe Electric Drive will come on the market in June
2013. Mercedes-Benz Cars expects significant growth in the luxury segment for
the second half of 2013, due mainly to the launch of the all-new S-Class. As
the most important new model of the year 2013, the new S-Class equipped with
trailblazing innovations will set new standards of comfortable and safe
driving under the umbrella term "Mercedes-Benz Intelligent Drive." In
addition, the Mercedes-Benz brand will continue to profit from the market
success of the models in the SUV segment in 2013.

The smart brand sees a good chance that the unique two-seater can continue to
defy its advancing lifecycle in the highly competitive micro-car segment in
2013 and can achieve unit sales in the previous year's range once again.

Daimler Trucks expects a slight increase in unit sales in the full year. In
the first half of the year, however, the continued weak state of the economy
will probably lead to a rather modest or even negative development of unit
sales in a number of core markets. The extensive product offensive, which is
now largely complete in all relevant regions, should provide a counterbalance
to the difficult economic conditions. As a result of this offensive, the
division is in a very good starting position: In Europe, unit sales will gain
added impetus from a full product range already in line with the stricter Euro
VI standards significantly ahead of the date of introduction, with the Actros,
the Antos, the new Arocs for the construction sector, and the new Atego. In
the NAFTA region, Daimler Trucks will maintain its competitive position with
its excellent vehicle offering in combination with strong Detroit components.
A convincing sales argument in favor of the Freightliner Cascadia Evolution
for example is the optimization of vehicle aerodynamics and powertrain, which
yields additional fuel savings of 5% compared to its predecessor, the previous
market benchmark.

The Fuso and BharatBenz brands will continue to make an important contribution
to sales growth in 2013. In the future, trucks of the Fuso brand will also be
produced in Chennai and exported to the Asian markets outside India and to
Africa. The Fuso Canter and its hybrid versions, which have also been produced
in Europe since 2012, should provide additional demand stimulus. Furthermore,
additional models of the BharatBenz truck will be launched in India and the
sales and service network will be further expanded. In Russia and China, the
division is progressively expanding its collaboration with local partners
Kamaz and Foton, and is thus creating the conditions for the further
development of those growth markets.

Mercedes-Benz Vans expects to achieve growth in unit sales in full-year 2013.
On the product side, this should be assisted by the new Mercedes-Benz Citan
and as of mid-2013 by the new generation of the Sprinter. Moreover, the start
of local production of the Sprinter Classic in Russia in the second quarter of
2013 should enable the division to continue increasing its unit sales in that
growth market.

Daimler Buses anticipates a significant increase in unit sales for the year
2013, with bus chassis likely to account for a higher percentage of total unit
sales. The division expects to see a distinct revival of demand in 2013
especially in Latin America. Daimler Buses assumes that its business with
complete buses in Europe will follow a stable development at an ongoing low
level.

Daimler Financial Services expects further growth in new business and contract
volume for full-year 2013.

After the significant increase in the year 2012, Daimler assumes that Group
revenue will continue to grow in 2013. In regional terms, above-average growth
rates are anticipated in the emerging markets and North America.

On the basis of the planned new models, the increasing effects of the
efficiency programs that have been initiated and the assumptions made for the
development of important markets, Daimler expects its earnings to improve in
the second half of 2013 compared with the first half. Due to the fact that
there will be no further equity-method results from EADS in the course of the
year, as well as lowered market expectations and the weaker than expected EBIT
in the first quarter, Group EBIT from the ongoing business in full-year 2013
is expected to be below the previous year's level.

Mercedes-Benz Cars anticipates full-year EBIT below the level of 2012. Daimler
Trucks and Mercedes-Benz Vans expect to post EBIT from the ongoing business in
the magnitude of the prior year, while Daimler Buses should improve on its
negative earnings of 2012. In 2014 and the following years, Daimler expects an
EBIT improvement for all its automotive divisions and for the Group as a
whole. Daimler Financial Services anticipates a stable development of
earnings.

From today's perspective, Daimler assumes that the size of its worldwide
workforce will remain largely stable compared with the end of 2012.

The items shown in the following table affected EBIT in the first quarters of
2013 and 2012:

Special items affecting EBIT
In millions of euros         Q1 2013 Q1 2012
Daimler Trucks                      

Workforce adjustments        -13     -

                                   

Daimler Buses                       

Business repositioning       -4      -36



Figures for the 1st Quarter 2013
Daimler Group                            Q1             Q1              Change
amounts in €                             2013           2012            13/12
Revenue, in millions                     26,102         27,011          - 3 %
EBIT, in millions                        917            2.098 ^1        - 56 %
Net profit, in millions                  564            1,425           - 60 %
Earnings per share (EPS)                 0.50           1.26            - 60 %
Employees (March 31)                     274,555        274,127         + 0 %
EBIT by Divisions/Segments               Q1             Q1 ^1           Change
in millions of €                         2013           2012            13/12
Mercedes-Benz Cars                       460            1,230           - 63 %
Daimler Trucks                           116            376             - 69 %
Mercedes-Benz Vans                       81             167             - 51 %
Daimler Buses                            -31            -105            -
Daimler Financial Services               314            344             - 9 %
Reconciliation                           -23            86              -
Revenue by Divisions/Segments            Q1             Q1              Change
in millions of €                         2013           2012            13/12
Mercedes-Benz Cars                       14,110         14,937          - 6 %
Daimler Trucks                           7,024          7,383           - 5 %
Mercedes-Benz Vans                       1,986          2,088           - 5 %
Daimler Buses                            751            730             + 3 %
Daimler Financial Services               3,577          3,140           + 14 %
Reconciliation                           -1,346         -1,267          -
Unit Sales                               Q1             Q1              Change
in units                                 2013           2012            13/12
Daimler Group                            501,600        502,086         - 0 %
Mercedes-Benz Cars                       341,511        338,303         + 1 %
Daimler Trucks                           101,433        107,664         - 6 %
Mercedes-Benz Vans                       52,623         51,223          + 3 %
Daimler Buses                            6,033          4,896           + 23 %
^1The previous year's figures were adjusted for the effects arising
from the revised IAS 19.



Further information from Daimler is available at: www.media.daimler.comand
www.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 an adverse development
of global economic conditions, in particular a decline of demand in our most
important markets; a worsening of the sovereign-debt crisis in the euro zone;
a deterioration of our funding possibilities on the credit and financial
markets; events of force majeure including natural disasters, acts of
terrorism, political unrest, industrial accidents and their effects on our
sales, purchasing, production or financial services activities; changes in
currency exchange rates; a shift in consumer preference towards smaller, lower
margin vehicles; or a possible lack of acceptance of our products or services
which limits our ability to achieve prices as well as to adequately utilize
our production capacities; price increases in fuel or raw materials;
disruption of production due to shortages of materials, labor strikes, or
supplier insolvencies; a decline in resale prices of used vehicles; the
effective implementation of cost-reduction and efficiency-optimization
measures; the business outlook of companies in which we hold a significant
equity interest; the successful implementation of strategic cooperations and
joint ventures; 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 conclusion 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. 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 financing,
leasing, fleet management, insurance and innovative mobility services. The
company's founders, Gottlieb Daimler and Carl Benz, made history with the
invention of the automobile in the year 1886. As a pioneer of automotive
engineering, Daimler continues to shape the future of mobility today: The
Group's focus is on innovative and green technologies as well as on safe and
superior automobiles that appeal to and fascinate its customers. For many
years now, Daimler has been investing continually in the development of
alternative drive systems with the goal of making emission-free driving
possible in the long term. So in addition to vehicles with hybrid drive,
Daimler now has the broadest range of locally emission-free electric vehicles
powered by batteries and fuel cells. 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
premium automotive brand, Mercedes-Benz, the brands smart, Freightliner,
Western Star, BharatBenz, Fuso, Setra and Thomas Built Buses. The company is
listed on the stock exchanges of Frankfurt and Stuttgart (stock exchange
symbol DAI). In 2012, the Group sold 2.2 million vehicles and employed a
workforce of 275,000 people; revenue totaled €114.3 billion and EBIT amounted
to €8.6 billion.

SOURCE Daimler Corporate Communications

Website: http://www.daimler.com
Contact: Han Tjan, +1 212 909-9063 or Florian Martens, +49 711 17-35014