Earnings Watch: Daimler 2016 Profit Hits Record High
The parent company to names such as Freightliner, Western Star, and Mercedes posted strong profits and revenue in the fourth quarter of last year. Daimler AG reported the best year in the company’s history, with strong automotive sales more than compensating for a weaker commercial truck market, and it’s expanding investment in research and development.
The Germany-based company said net profit in the three months ended Dec. 31 rose 19% from the same time a year ago to 2.15 billion euros, or $2.32 billon, according to MarketWatch, while revenues increased 1% to 41 billion euros. Despite the increase in profit, it was a little short of a consensus forecast of Wall Street analysts.
For all of 2016, net profit increased 1% from 2015 to best-ever figures of 8.8 billion euros, as revenue moved up 3% to 153.26 billion euros.
“With our very attractive products and the measures taken to enhance efficiency, we have made considerable progress and stabilized our business despite volatile market developments,” said Bodo Uebber, member of the board of management of Daimler AG responsible for finance and controlling and Daimler Financial Services.
Daimler increased its total unit sales in 2016 by 5% to around 3 million vehicles, due in large part to unit sales increasing 10% at Mercedes-Benz Cars and 12% at Mercedes-Benz Vans.
In contrast, Daimler Trucks’ unit sales of 415,100 vehicles were substantially lower than the high prior-year figure of 502,500. Revenue decreased to 33.2 billion euros from 37.6 billion euros. The division’s earnings before interest and taxes of 1.95 billion euros was significantly below the high level of 2.58 billion euros achieved in the previous year.
The 17% decline in truck unit sales for 2016 was due sharply lower sales in North America, Turkey, the Middle East, Latin America and Indonesia. Daimler Trucks earnings were also reduced by intense competition …Read the rest of this story
