Daimler Raises Margin Outlook for Two Divisions After 1Q Profit Soars
April 23 2021 - 2:10AM
Dow Jones News
By Kim Richters
Daimler AG on Friday increased the margin targets for its
Mercedes-Benz and Mobility divisions for the year, after profit and
revenue increased in the first quarter.
The German premium car maker's net profit for the quarter soared
to 4.29 billion euros ($5.16 billion), from EUR94 million a year
earlier. Revenue for the quarter rose 10% to EUR41.02 billion.
Daimler said it benefited from tailwinds in China, a strong product
mix and favorable pricing.
It confirmed previously released preliminary figures, with
earnings before interest and taxes of EUR5.75 billion and adjusted
EBIT of EUR4.97 billion.
On the back of the quarterly results, Daimler raised its margin
outlook for the year for the Mercedes-Benz Cars & Vans and
Daimler Mobility divisions. Now, it expects adjusted return on
sales of 10%-12% for the Mercedes-Benz division, compared with
8%-10% previously, and an adjusted return on equity of 14%-15% at
its mobility division, compared with 12%-13% prior.
It backed its group outlook for 2021 of sales, revenue and EBIT
significantly above the prior-year level and its margin guidance
for the Daimler Trucks & Buses division.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
April 23, 2021 01:55 ET (05:55 GMT)
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