Daimler Reports Q1 DFS Volume Increase; Truck Sales Up 21%
APR 30, 2018 - 8:10 am
Daimler AG reported Q1/18 revenue was up by 3% to €39.8 billion ($48.2 billion), up 8% after adjusting for exchange-rate effects. Net profit of €2.4 billion ($2.9 billion) was down compared to €2.7 billion ($3.3 billion) in Q1/17.
Daimler Financial Services
DFS increased its new business once again in Q1/18. Worldwide, 494,000 new leasing and financing contracts were concluded with a total volume of €17.9 billion ($21.7 billion), which is 6% more than in the prior-year period. Contract volume reached €141.7 billion ($172.6 billion) at the end of March and was thus at the level of year-end 2017. Adjusted for exchange-rate effects, contract volume grew by 2%.
DFS anticipates further growth in contract volume in the year 2018. This will be primarily driven by the strong development of new business in 2017, which should continue at the same high level this year. The division will utilize new market potential above all in China, as well as through new and digital possibilities for customer contacts – in particular by systematically further developing its online sales channels.
In the insurance business, DFS brokered 523,000 contracts, and thus 12% more than in Q1/17. The mobility services of DFS alone – with car2go, moovel and mytaxi – had 21.4 million customers and 37.5 million transactions in more than 100 cities in the first quarter of this year.
Daimler sold 806,900 cars and commercial vehicles worldwide in the first three months of 2018, surpassing the number sold in the prior-year period by 7%. All of the automotive divisions contributed to the best-ever unit sales in a first quarter, especially Mercedes-Benz Cars with its most successful first quarter of all time (594,300 units; +5%).
Daimler Trucks increased its first quarter unit sales by 21% to 113,800 vehicles. In a positive market environment in the NAFTA region, sales increased significantly to 40,800 vehicles (Q1/17: 32,900).
Significant growth was achieved also in Latin America, with 9,400 trucks sold (Q1/17: 6,300). A key contribution came from the positive development in Brazil with sales of 4,000 units (Q1/17: 2,400). In the EU30 region (European Union, Switzerland and Norway), sales of 17,300 trucks were close to the number sold in the prior-year period (Q1/17: 17,400). In Germany, 6,100 trucks were sold (Q1/17: 6,500). Sales in Turkey increased to 1,800 vehicles (Q1/17: 1,300). In Asia, 37,700 trucks were sold, which is significantly more than in the prior-year period (Q1/17: 30,000). Sales in Indonesia rose significantly to 12,500 units (Q1/17: 7,200). In Japan, sales of 12,000 vehicles were slightly higher than in the same period of last year (Q1/17: 11,600). Sales in India increased significantly to 6,200 trucks. Sales of trucks of the Auman brand by the joint venture BFDA in China decreased to 24,000 units (Q1/17: 26,400).
Daimler Trucks – Outlook
Daimler Trucks assumes that its total unit sales in the year 2018 will be significantly higher than in the previous year. One main reason for this is the significant recovery of some important markets. In the NAFTA region, the truck division expects a significant sales increase compared with 2017 due to the ongoing market recovery. In the EU30 region, unit sales are anticipated in the magnitude of the previous year. In Brazil, the division expects its unit sales in 2018 to be significantly higher than the low level of 2017.
Significant sales growth is anticipated also in India. With its attractive product portfolio, Daimler Trucks should be able to continue strengthening its position in the Indian market. Unit sales should grow again significantly also in Indonesia. In Japan, it is assumed that unit sales will be at about the prior-year level.
“We are sustainably continuing along our profitable growth course and sold more vehicles in a first quarter than ever before. We aim to continue building on this and to further consolidate our leading position in the premium segment, because we have big plans for the future,” said Dr. Dieter Zetsche, chairman of the board of management of Daimler AG and head of Mercedes-Benz Cars. “With the five pillars of our strategy – CORE, CASE, CULTURE, COMPANY and CUSTOMER – we are ideally prepared for the transformation of the industry and of our company.”
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