By Jessica Sier

 

Daimler AG reported first-quarter results on Wednesday. Here's what you need to know:

 

AFTER TAX PROFIT: After-tax profit for the quarter fell to 168 million euros ($182.1 million) from EUR2.15 billion a year earlier.

 

NET PROFIT: Net profit attributable to the group's shareholders was EUR94 million, compared with EUR2.10 billion a year earlier.

 

REVENUE: Revenue fell 6% to EUR37.22 billion.

 

WHAT WE WATCHED:

 

-CHINA RECOVERY: Daimler's 40 Chinese plants are producing again and the company said supply chains are stable. "If and when [a market rebound] comes we are ready to go," said Ola Kaellenius, Daimler CEO.

 

-LIQUIDITY: Daimler has invested heavily in new technology in recent quarters, though the need for cash to cover the economic damage caused by the coronavirus is on the mind of investors. Negative cash flow in Daimler's industrial businesses grew to EUR2.3 billion in the first quarter.

 

-FINCOS: Daimler said EUR448 million in loan loss provisioning at its captive financial services business in the first quarter was taken to reflect expected credit losses. A so-called finco is a finance subsidiary set up solely to offer auto loans to buyers of a particular dealership or car company. "We have a normal run rate of actual credit losses," said Harald Wilhelm, Daimler's CFO.

 

-CO2 COMPLIANCE: Daimler won't request any changes to the CO2 targets. Mr. Kaellenius said Daimler is committed to compliance, even if achieving fleet-emission targets is a difficult task. "For the first quarter, so far so good," he told analysts.

 

Write to Jessica Sier at jessica.sier@wsj.com

 

(END) Dow Jones Newswires

April 29, 2020 08:03 ET (12:03 GMT)

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