Daimler reports another significantly improved quarter

            Daimler reports another significantly improved quarter

PR Newswire

STUTTGART, Germany, Oct. 24, 2013

STUTTGART, Germany, Oct. 24, 2013 /PRNewswire/ --

  oUnit sales up by 13% to 595,000 vehicles
  oRevenue above prior-year level at €30.1 billion
  oGroup EBIT of €2,231 million (Q3 2012: €1,923 million) again on a very
    high level
  oNet profit of €1,897 million (Q3 2012: €1,238 million)
  oGrowth in unit sales and revenue anticipated for full-year 2013
  oGroup EBIT from ongoing business expected to be around
    €7.5 billion
  oGroup EBIT in the fourth quarter expected to be higher than in the
    prior-year period

In the third quarter of 2013, Daimler AG (ticker symbol DAI) once again
achieved significantly higher earnings than in the prior-year period. The
Daimler Group's EBIT for the period of July through September amounted to
€2,231 million (Q3 2012: 1,923 million). Net profit reached €1,897 million (Q3
2012: €1,238 million). Earnings per share were €1.72 (Q3 2012: €1.06).

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"Our earnings continued improving in the third quarter, compared with the year
to date and compared with the prior-year period. This shows that the high
investments we have made were money well spent. We will continue to invest in
products and production sites in order to secure the Group's sustainable
medium and long-term success," stated Dr. Dieter Zetsche, Chairman of the
Board of Management of Daimler AG and Head of Mercedes-Benz Cars.

"We are continuing with the effective implementation of our growth offensives
and efficiency programs. That is having an increasingly positive impact on our
earnings and gives us a good starting position for the year 2014. We are also
continuing to work with a clear focus on achieving our targets and we
anticipate further earnings improvements in the future," explained Bodo
Uebber, Member of the Board of Management of Daimler AG for Finance &
Controlling and Financial Services.

The earnings improvement in the third quarter of 2013 was due in particular to
the good development of unit sales by the automotive divisions and the
increasing impact of the efficiency programs. Daimler Financial Services
equaled its EBIT of the prior-year period.

The special items affecting EBIT in the third quarter are shown in the table
on page 11.

Unit sales up by 13% compared with Q3 2012

In the third quarter of 2013, the Daimler Group sold 594,900 passenger cars
and commercial vehicles worldwide, surpassing the prior-year total by 13%.

The Daimler Group's third-quarter revenue amounted to €30.1 billion, which is
5% higher than in the third quarter of last year. Adjusted for exchange-rate
effects, revenue grew by 11%.

The free cash flow of the industrial business amounted to €3.9 billion in the
first nine months of 2013, including €2.2 billion from the sale of the
remaining shares in EADS. In the third quarter, the cash flow of the
industrial business amounted to €1.6 billion. Compared with December 31, 2012,
the net liquidity of the industrial business increased by €1.1 billion to
€12.6 billion.

At the end of the third quarter of 2013, Daimler employed 276,320 people
worldwide (end of Q3 2012: 275,451). Of that total, 167,727 were employed in
Germany (end of Q3 2012: 166,888), 21,330 in the United States (end of Q3
2012: 21,930), 14,340 in Brazil (end of Q3 2012: 14,709) and 11,323 in Japan
(end of Q3 2012: 11,337). The Group's consolidated subsidiaries in China
employed 1,882 people at the end of the third quarter (end of Q3 2012: 2,648).
The decreased headcount in China resulted from the integration of the sales
organizations for cars into a non-consolidated joint-venture company.

Details of the divisions

Mercedes-Benz Cars once again achieved a record level of unit sales in the
third quarter of 2013. Total sales by the car division grew by 14% to 395,400
units. Third-quarter revenue grew by 8% to €16.5 billion, and EBIT of €1,200
million was significantly higher than the prior-year result (Q3 2012: €973
million). The division's return on sales was 7.3% (Q3 2012: 6.4%).

The development of earnings primarily reflects the ongoing growth in unit
sales, especially in China, the United States and Western Europe. A major
contribution came from the expanded range of compact cars. Earnings growth was
achieved also as a result of better pricing. Furthermore, efficiency actions
taken as part of the Fit for Leadership program had an increasingly positive
impact on earnings. The changed model mix had a negative effect on earnings.
There was an additional negative effect from expenses connected with product
enhancements.

Daimler Trucks' third-quarter unit sales were 4% above the prior-year level at
124,500 vehicles. Revenue reached €8.0 billion (-1%). Exchange-rate movements,
in particular the depreciation of the Japanese yen, had a significant negative
impact on the division's revenue. Adjusted for exchange-rate effects, revenue
increased by 8%. The EBIT posted by Daimler Trucks of €522 million was higher
than the €501 million achieved in the prior-year quarter. The division's
return on sales was 6.5% (Q3 2012: 6.2%).

The development of earnings reflects a slight revival of unit sales. On the
one hand, there was a market recovery in Brazil; on the other hand, there were
positive effects from the business in Western Europe, partially resulting from
vehicle purchases brought forward due to the upcoming introduction of Euro VI
emission regulations in 2014. However, earnings were negatively affected by
increased warranty expenses and exchange-rate effects. Furthermore, there were
expenses of €8 million for workforce adjustments in the context of an
optimization program in Germany and Brazil. The efficiency actions of the
Daimler Trucks #1 program had an increasingly positive influence on earnings.

Mercedes-Benz Vans increased its unit sales by 17% to 65,300 vehicles in the
third quarter of 2013. Revenue of €2.3 billion was also significantly higher
than in the prior-year period (Q3 2012: €2.1 billion). Mercedes-Benz Vans
achieved third-quarter EBIT of €152 million (Q3 2012: €75 million). The
division's return on sales improved to 6.7% from 3.6% in the prior-year
period.

In a market environment that was still affected by weak demand and intense
competition in Europe, unit sales by Mercedes-Benz Vans were significantly
higher than in the third quarter of last year. In addition to the increased
unit sales, better pricing also had a positive impact. Continued efficiency
improvements were apparent in the form of lower material and development
expenses as well as lower warranty costs.

Daimler Buses increased its worldwide sales by 17% to 9,600 units in the third
quarter of 2013, primarily as a result of increased demand in Western Europe
and Latin America. Revenue of

€1.1 billion was also significantly higher than in the prior-year period
(+19%). Third-quarter EBIT of plus €59 million was significantly better than
in the prior-year period (Q3 2012: minus €36 million). The division's return
on sales was plus 5.2% (Q3 2012: minus 3.8%).

This positive development was driven by unit-sales growth in Western Europe
and Latin America. Other factors leading to the earnings improvement were
ongoing efficiency progress in the European business system and lower expenses
for the repositioning of the European and American business systems. There
were opposing, negative effects on EBIT compared with the third quarter of
last year from increased research and development expenses.

Daimler Financial Services concluded approximately 296,000 new leasing and
sales-financing contracts in a volume of €10.4 billion, thus generating 4%
more new business than in the third quarter of last year. Contract volume
reached €82.0 billion at the end of September and was thus 2% higher than at
the end of 2012. Adjusted for exchange-rate effects, there was an increase of
6%. With third-quarter EBIT of €322 million, Daimler Financial Services
equaled its earnings of the prior-year period.

Positive effects on earnings from the increased contract volume were offset by
negative exchange-rate effects and lower interest margins.

The reconciliation of the divisions' EBIT to Group EBIT comprises income and
expenses at the corporate level as well as effects on earnings from the
elimination of intra-group transactions between the divisions.

At the corporate level, there was an expense of €30 million (Q3 2012: income
of €98 million). The elimination of intra-group transactions resulted in
income of €6 million in the third quarter of 2013 (Q3 2012: expense of €10
million).

Outlook

From today's perspective, worldwide demand for cars seems likely to expand by
about 3% this year. This growth will primarily be driven by ongoing strong
increases in demand in the United States and China. Demand for cars has
meanwhile stabilized at a low level in Western Europe, and a gradual
improvement of the market situation is to be anticipated in the rest of the
year. As the general economic environment is still difficult, this will be too
weak to compensate for the significant market losses of the first half of the
year. A decrease is therefore expected for the full year. The German car
market should follow a similar path in the fourth quarter, but will also be
smaller in 2013 than last year. Market contraction is anticipated also in
Japan, primarily due to unusually strong demand in the previous year caused by
state incentives for car buyers.

From the current perspective, the best that can be expected for global demand
for medium and heavy-duty trucks in 2013 is a volume equal to the previous
year. If the sharp market downturn in India continues unabated and market
growth in China is significantly slower than recently expected, slight
contraction of the world market cannot be ruled out. Due to political
uncertainty in the United States, no significant upward trend is likely for
North America in the remaining months of the year. Daimler therefore continues
to anticipate market contraction of up to 5% for the full year compared with
2012. In the European truck market, purchases brought forward in connection
with the upcoming introduction of the Euro VI emission regulations should be
increasingly apparent in sales of new vehicles in the coming months. As new
registrations of Euro V vehicles are possible under certain conditions also in
early 2014, the special effect anticipated for the fourth quarter of 2013 is
still hard to quantify. From today's perspective, the market is likely to
contract by about 5% in the full year. In Japan, the economic stimulus program
that was approved this spring has helped to counteract the weakness of demand
that was still apparent at the beginning of the year. It is therefore assumed
that the market's volume will be of the magnitude of last year. Growth of up
to 10% is to be expected for the Brazilian market, despite a less optimistic
economic outlook. Demand for trucks in Russia will be lower this year than
last, however. In India, a significant double-digit drop in truck sales is
anticipated due to the continuation of below-average economic growth.

On the basis of the divisions' planning, Daimler expects its total unit sales
to increase again in the year 2013.

Mercedes-Benz Cars is consistently pursuing the Mercedes-Benz 2020 offensive.
Numerous model changes and new products will ensure that the division reaches
a new record level of unit sales in 2013. The new E-Class and in particular
the new compact cars will make major contributions to the expected growth in
unit sales. The models of the A-Class and B-Class and the new CLA are very
popular in the market. In order to satisfy the high demand for the A-Class,
Daimler has arranged for this car to be additionally assembled by the Finnish
production specialist Valmet Automotive. The new E-Class coupes and
convertibles have provided added sales impetus since June. In the future,
Mercedes-Benz anticipates significant growth in the luxury segment, primarily
due to the launch of the new S-Class in major markets such as China and the
United States. The new S-Class, which was launched in Europe this July, is the
most important new model of 2013. It sets new standards with regard to
comfortable and safe driving with pioneering innovations packaged under the
name of Mercedes-Benz Intelligent Drive. Furthermore, the Mercedes-Benz brand
continues to profit from the great market success of its models in the SUV
segment. Despite its advancing lifecycle, the smart brand with its unique
two-seater aims to achieve unit sales in the magnitude of last year in the
highly competitive micro-car segment.

Daimler Trucks anticipates slightly higher unit sales in full-year 2013 than
in the previous year. In line with expectations, demand in the first half of
the year was significantly lower than in the prior-year period due to the
continuingly difficult economic situation. In recent months, the situation has
improved slightly in some key markets. At the same time, with its completely
renewed model range, the division has gained market share in many important
segments and has thus strengthened its market position. Furthermore, some
purchases are being brought forward in Europe due to the upcoming introduction
of stricter emission limits in 2014. This will help to increase Daimler
Trucks' unit sales during the rest of the year. In the NAFTA region, it has
been possible to maintain stable sales figures despite the recent decline in
demand from the market, which has led to significant growth in market share in
Classes 6-8. This sales trend should continue in the coming months. In Brazil,
the market recovery is continuing and should contribute towards significant
growth in unit sales in the full year. In Asia, Daimler Trucks continues to
anticipate disparate developments in the various markets: Due in part to state
incentives for truck buyers in Japan, unit sales there are expected to rise.
Business volumes in India continue to grow following the launch of the
BharatBenz brand, and this presence in the country is also being used to
develop new export markets. In other Asian markets, the division's unit sales
should remain at about the prior-year levels as a result of weak demand and
tough price competition.

Mercedes-Benz Vans assumes that it will increase its unit sales in 2013. On
the product side, the new Mercedes-Benz Citan and the new Sprinter should
contribute to that growth. Local production of the Sprinter Classic in Russia
should allow the division to further increase its unit sales also in that
growth market.

Daimler Buses assumes that its unit sales of both chassis and complete buses
will increase significantly in 2013. In Latin America, Daimler Buses foresees
a significant revival of demand in the full year. For the business with
complete buses in Western Europe, the division expects to see a significantly
positive development of sales in a stable market environment, so that its
market share should improve significantly.

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

Following significant growth in 2012, Daimler assumes that its Group revenue
will increase again in 2013. The main source of the revenue growth will be the
successful product offensive of Mercedes-Benz Cars. In regional terms,
above-average growth rates are expected for the emerging markets as a whole
and also for North America.

On the basis of current market assessments, the Group anticipates EBIT from
the ongoing business of around €7.5 billion for full-year 2013.

For the individual divisions, EBIT from the ongoing business is anticipated in
the following magnitudes:

- Mercedes-Benz Cars:        approximately €4.0 billion
- Daimler Trucks:  approximately €1.7 billion
- Mercedes-Benz Vans:       approximately €0.6 billion
- Daimler Buses: approximately €0.1 billion
- Daimler Financial Services:     approximately €1.25 billion

In the fourth quarter, Daimler expects that EBIT from the ongoing business
will be higher than in the prior-year period. This is based on the expectation
of continued strong sales performance of the new models, benefits from the
initiated efficiency measures, the assumptions made for the development of key
markets and less favorable currency exchange rates.

On the basis of current market assessments, Daimler expects improvements in
earnings from the ongoing business for all the automotive divisions and at the
Group in the following years. This assessment is supported by the consistent
implementation of the efficiency and growth programs, especially Fit for
Leadership at Mercedes-Benz Cars and Daimler Trucks #1. At Daimler Financial
Services, an ongoing stable earnings development is anticipated.

From today's perspective, Daimler assumes that the number of employees
worldwide at year-end will remain stable compared with the end of 2012.

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

Special items affecting EBIT
In millions of euros                 Q3 2013 Q3 2012
Daimler Trucks
Workforce adjustment                 -8      -
Daimler Buses
Business repositioning               -2      -16
Reconciliation
EADS – remeasurement and sale of the
                                     13      -
remaining shares

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.



Figures for the 3rd quarter and the first nine months 2013
Daimler Group              Q3      Q3      Change  YTD       YTD       Change
amounts in €              2013    2012    13/12   2013      2012      13/12
Revenue, in millions      30,099  28,572  + 5 %   85,893    84,467    + 2 %
EBIT, in millions*        2,231   1,923   + 16 %  8,390     6,289     + 33 %
Net profit, in millions*  1,897   1,238   + 53 %  7,044     4,228     + 67 %
Earnings per share (EPS)* 1.72    1.06    + 62 %  4.87      3.71      + 31 %
Employees (September 30)   276,320 275,451 + 0 %   276,320   275,451   + 0 %
EBIT by                    Q3      Q3      Change  YTD       YTD       Change
Divisions/Segments*
in millions of €          2013    2012    13/12   2013      2012      13/12
Mercedes-Benz Cars         1,200   973     + 23 %  2,701     3,540     - 24 %
Daimler Trucks             522     501     + 4 %   1,072     1,401     - 23 %
Mercedes-Benz Vans        152     75      + 103 % 437       442       - 1 %
Daimler Buses             59      -36     -       55        -200      -
Daimler Financial Services 322     322     0%      955       1,004     - 5 %
Reconciliation             -24     88      -       3,170     102       -
Revenue by                 Q3      Q3      Change  YTD       YTD       Change
Divisions/Segments
in millions of €           2013    2012    13/12   2013      2012      13/12
Mercedes-Benz Cars         16,521  15,238  + 8 %   46,955    45,539    + 3 %
Daimler Trucks             7,982   8,095   - 1 %   22,971    23,607    - 3 %
Mercedes-Benz Vans         2,253   2,084   + 8 %   6,673     6,592     + 1 %
Daimler Buses              1,127   951     + 19 %  2,812     2,697     + 4 %
Daimler Financial Services 3,657   3,524   + 4 %   10,782    9,924     + 9 %
Reconciliation             -1,441  -1,320  -       -4,300    -3,892    -
Unit Sales                 Q3      Q3      Change  YTD       YTD       Change
in units                   2013    2012    13/12   2013      2012      13/12
Daimler Group              594,874 528,559 + 13 %  1,702,297 1,600,988 + 6 %
Mercedes-Benz Cars        395,446 345,418 + 14 %  1,141,668 1,054,105 + 8 %
Daimler Trucks             124,465 119,142 + 4 %   349,661   349,023   + 0 %
Mercedes-Benz Vans         65,314  55,742  + 17 %  187,373   176,289   + 6 %
Daimler Buses              9,649   8,257   + 17 %  23,595    21,571    + 9 %
*The 2012 figures were adjusted for the effects of the application of the
revised IAS 19.



SOURCE Daimler Corporate Communications

Website: http://www.daimler.com
Contact: Han Tjan +1 212 909-9063; Heinz Gottwick +49 711 17-42233; Hendrik
Sackmann +49 711 17-35014