Mexican Media Brands
Daimler Sales Up, Profits Down
Daimler AG hiked its revenue and unit sales in 2018 by 2% each to €167.4 billion ($190.5 billion) and 3.4 million passenger vehicles and commercial trucks, respectively.
#economics
Share
Daimler AG hiked its revenue and unit sales in 2018 by 2% each to €167.4 billion ($190.5 billion) and 3.4 million passenger vehicles and commercial trucks, respectively.
But the company’s net profit slid 28% to €7.6 billion ($8.6 billion) from €10.6 billion in 2017, when a one-time U.S. tax windfall boosted results by €1 billion. Earnings before interest and taxes last year shrank 22% to €11.1 billion ($12.6 billion).
CEO Dieters Zetsche blames last year’s sagging results on headwinds that included global trade issues, the European Union’s new emission test protocol and continuing legal and regulatory skirmishes over diesels.
A 9,300-unit gain in 2018 resulted in a record-high 2.38 million vehicle deliveries for the company’s Mercedes-Benz brand. Sales jumped 10% to a record 517,300 vehicles for Daimler Trucks. Sales of commercial vans rose 5% to a record 421,400 units, the fifth record high in as many years.
Daimler predicts modest or no growth in unit sales and revenue this year. The company expects “slight” growth in EBIT.
RELATED CONTENT
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future
-
Tariffs on Autos: “No One Wins”
While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.