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Earnings Analysis: 
Daimler’s Profit Rises 5% on Strong Unit Sales
Author: 123jump.com Staff
123jump.com
Last Update: 12:51 PM EST February 19 2008


The German maker of luxury vehicles added that full year revenues were unchanged at 99.3 billion euro from 99.2 billion euro last year. Net profit for the fiscal year rose to 3.98 billion euro from 3.7 billion euro a year earlier as unit sales gained 1% to 2,088,973 units from 2,072,885 units a year ago. Full year EBIT also grew 74% from 4.99 billion euro last year to 8.71 billion euro.

 
[R]Daimler Chrysler reported that full-year net profit gained 5% to 3.98 billion euro in 2007 from 3.78 billion euro in 2006.[/R]

Quarterly Earnings Review

Daimler Chrysler reported fourth quarter revenues increased 3% to 575 million euro from 556.5 million euro in the comparative period last year as unit sales grew 3% to 575,353 units from 556,541 units in the fourth quarter of 2006.

In the quarter ended December 31st, net profit grew to 1.69 billion euro from a loss of 12 million euro in 2006. Basic earnings per share rose to 1.71 euro from 0.01 euro in the same period a year ago.

Fourth quarter EBIT jumped 153% to 1.39 billion euro from 550 million euro in the year-ago quarter.

Annual Earnings Review

Daimler reported full-year revenues were unchanged at 99.3 billion euro from 99.2 billion euro a year ago on a 1% increase in unit sales to 2,088,973 units from 2,072,885.

For the year, group net profit increased 5% from 3.7 billion euro a year ago to 3.9 billion euro. Basic earnings per share also increased to 3.83 euro from 3.66 euro a year ago.

Full year EBIT climbed 74% to 8.71 billion euro from 4.99 billion euro a year earlier.

Segment Review

Mercedes-Benz Cars

Revenues in the division climbed 2% from the previous year to 52.4 billion euro, while full-year EBIT rose to 4.7 billion euro.

Return on equity at 9.1% exceeded the target of 7%.

Sales in the Mercedes Benz division, which consists of Mercedes-Benz, Maybach, smart, Mercedes AMG, and Mercedes-Benz McLaren, rose 3% from last year to 1,293,200 units.

Unit sales for the Mercedes-Benz brand rose by 3% to 1,180,100 vehicles, while the smart brand sold 103,100 vehicles from 102,700 units in the previous year.

The new C-Class, unveiled at the Frankfurt International Motor Show in September last year, was the most important new product launched by Mercedes-Benz in 2007.

In October 2007, Mercedes-Benz sold the 250,000th vehicle of the second generation of the M-Class since its market launch in April 2005.

Daimler Trucks

For the year, revenues dropped to 28.5 billion euro from 31.8 billion euro realized a year ago as unit sales slumped 9% to 467,700 units. In the year, there were lower market volumes in Canada, U.S. and Japan.

Return on sales in the year rose to 7.5% from 5.8% and EBIT increased to 2.1 billion euro.
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