On The Basis Of Current Estimates

On The Basis Of Current Estimates

Daimler AG (stock-exchange symbol DAI) continued its successful course in the third quarter of 2011. Group EBIT amounted to 鈧?,968 million (Q3 2010: 鈧?,418 million). Adjusted for special factors, however, EBIT from the ongoing business of 鈧?,110 million was higher than in the prior-year period (Q3 2010: 鈧?,022 million). Net profit for the period was 鈧?,360 million (Q3 2010: 鈧?,610 million) and earnings per share amounted to 鈧?.21 (Q3 2010: 鈧?.44). The development of earnings in the third quarter of 2011 primarily reflects the higher vehicle shipments by all divisions. As already announced in the second quarter, EBIT at Mercedes-Benz Cars was impacted by changes in the product mix and by charges due to the upcoming model changes. All other divisions posted higher earnings than in the prior-year period. 鈥淒aimler operated very successfully also in the third quarter. All divisions developed as we expected,鈥?commented Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. 鈥淥ur company is extremely well positioned in this jubilee year and has a very sound balance sheet.

All the divisions are pursuing their goals very consistently and are right on track. At the same time, we are more flexible than ever before, so that we can react quickly to future developments,鈥?Zetsche pointed out. Net profit for the third quarter of 2011 includes charges from the impairment of Daimler鈥檚 investments in Renault and Kamaz of 鈧?10 million and 鈧?3 million respectively. The investments had to be impaired to their fair values due to the sharp fall in both companies鈥?share prices. Group revenue increased significantly by 5% to 鈧?6.4 billion (Q3 2010: 鈧?5.1 billion). The net liquidity of the industrial business amounted to 鈧?0.4 billion at September 30, 2011 (December 31, 2010: 鈧?1.9 billion). Excluding the increase in our investment in Tognum and the contributions to our pension funds, the free cash flow of the industrial business was also significantly positive at 鈧?.5 billion. The division achieved EBIT of 鈧?,108 million, despite a large number of factors with a negative impact on earnings (Q3 2010: 鈧?,299 million).

Daimler Trucks also continued its successful business development and increased its unit sales by 22% compared with the third quarter of last year to sell 115,600 vehicles. The division鈥檚 revenue grew to 鈧?.6 billion (Q3 2010: 鈧?.4 billion). The positive development of earnings is primarily due to substantial growth in unit sales compared with the prior-year period. Sales growth was particularly strong in the NAFTA region, Europe and Latin America. There were opposing, negative effects on third-quarter earnings from increased material costs, high advance expenditure for the current product offensive and the impairment of the equity interest in Kamaz. Mercedes-Benz Vans increased its unit sales by 18% to 63,500 vehicles (Q3 2010: 53.700). Revenue of 鈧?.2 billion was also significantly higher than in the third quarter of last year (鈧?.9 billion). The division achieved third-quarter EBIT of 鈧?00 million (Q3 2010: 鈧?22 million). Its return on sales improved to 9%, compared with 6.4% in the prior-year period.

The main drivers of the positive earnings trend were the ongoing market recovery and significantly higher unit sales, especially in Germany and the United States. The excellent market reaction to the new generations of the Vito and Viano also made a significant contribution. Earnings were additionally boosted by better pricing. On the other hand, the division鈥檚 EBIT was negatively affected by higher material costs. Daimler Buses increased its unit sales to 9,200 complete buses and chassis (Q3 2010: 9,100), mainly because of the positive development of chassis sales. Revenue of 鈧?,041 million was also higher than in the prior-year period (Q3 2010: 鈧?,007 million). The division achieved EBIT of 鈧?5 million (Q3 2010: 鈧?1 million). Its return on sales therefore increased from 1.1% to 2.4%. As well as the overall increase in unit sales, this positive earnings development was caused by positive exchange-rate effects. With EBIT of 鈧?37 million in the third quarter of 2011, the division surpassed its earnings of 鈧?17 million in the prior-year period.

The improvement in earnings was mainly caused by lower provisions for risks and an increased contract volume. There were opposing, negative effects on earnings from higher expenses in connection with the repositioning of business activities in Germany. The divisions鈥?EBIT is reconciled to Group EBIT. This reconciliation primarily reflects the proportionate share of the results of the equity-method investment in EADS as well as other gains and losses at the corporate level. Items accounted for at the corporate level resulted in a total expense of 鈧?50 million (Q3 2010: income of 鈧?91 million), mainly reflecting the impairment of the investment in Renault by an amount of 鈧?10 million. In the third quarter Daimler and Rolls-Royce Holdings plc have received all the relevant regulatory approvals for the takeover of Tognum AG. The public tender offer made by Engine Holding GmbH, in which Daimler and Rolls-Royce each hold 50%, was closed in September 2011. At the end of the third quarter, Engine Holding held approximately 98% of the shares in Tognum AG.