Daimler AG has posted handsome numbers in 2015 and achieved record levels of unit sales and revenue, as well as EBIT from the ongoing business, Group EBIT and net profit, with contributions from all divisions. For the year 2016, due to the very attractive and highly competitive product ranges of all the divisions, the Group assumes that it will profit to an above-average extent from the anticipated slight growth in global demand for automobiles, thus strengthening its position in major markets and further increasing its unit sales. Accordingly, further growth is expected in revenue and EBIT from the ongoing business.
“2015 was a good year for Daimler,” stated Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, upon opening the 2016 Annual Press Conference. “We know from experience: Getting to the top is hard, but staying at the top is even harder. That’s our ambition: Daimler belongs at the top on a sustained basis.”
In financial year 2015, the Group achieved its best ever EBIT of €13.5 billion (2014: €10.8 billion) and its best EBIT from the ongoing business of €13.8 billion (2014: €10.1 billion). Net profit of €8.9 billion was significantly higher than in the previous year (2014: €7.3 billion). Earnings per share increased to €8.08 (2014: €6.51).
As previously announced, Daimler significantly increased its total unit sales in 2015. The number of around 2.9 million vehicles sold was 12% higher than in 2014. This growth was primarily driven by the Mercedes-Benz Cars division (+16%) and to a lesser extent by Mercedes-Benz Vans (+9%). At Daimler Trucks, the growth in unit sales of 1% was lower than originally expected, mainly due to weak markets in Latin America and Indonesia. At Daimler Buses, for which slight growth had been expected at the beginning of the year, unit sales were significantly below the prior-year level. This was primarily due to the pronounced weakness of the markets for bus chassis in Latin America. Driven by the growth in unit sales, Daimler increased its total revenue by 15% to €149.5 billion in 2015; adjusted for exchange-rate effects, revenue grew by 9%.
“The development of earnings at the Daimler Group over recent years clearly shows that our strategy is working and that we are growing profitably,” stated Bodo Uebber, Board of Management Member at Daimler AG responsible for Finance & Controlling and Daimler Financial Services. “We increased our EBIT from the ongoing business by over a third compared with 2014; compared with 2010, our earnings have actually almost doubled. And revenue has increased by more than 50% in the past five years.”
Indian market shows promise
As regards India, Daimler’s statement regarding various markets mentions, “Market growth in India should accelerate again (for passenger cars), significant growth in the segment of medium- and heavy-duty trucks is anticipated (for M&HCVs). (For export of the made-in-Chennai Fuso trucks) In India, growth in unit sales should be achieved with the very well-positioned product portfolio. And the division will generate additional unit sales in Asia and Africa with the expanded range of Fuso vehicles produced in India.”