Daimler Buses back in the black

Daimler Buses has returned to profitability, posting an operating profit of Euro 124 million (approximately $A192 million) in 2013

Daimler Buses has turned around its recent fortunes, recording an operating profit of Euro 124 million ($A124 million) in 2013 after posting an equivalent loss in 2012 of Euro 221 million ($A342 million).

It also recorded sales growth of five per cent in 2013, with 33,700 units sold as opposed to 32,100 for the previous corresponding period, while revenues increased by four per cent to Euro 4.1 billion ($A6.3 billion), up from Euro 3.9 billion ($A6.0 billion).

According to Hartmut Schick, chief of Daimler Buses, the division has followed through on its strategy and is on track for continued growth.

“Our efforts have paid off,” he said.

“We achieved the turnaround, which offers proof of the type of performance the entire team at Daimler Buses is capable of. We want to continue this successful development in 2014 by achieving further growth.”

In the firm’s home market of Germany, Daimler achieved an increased market share of 50 per cent, the growth driven by sales of Euro-VI-compliant Mercedes-Benz and Setra models, and in particular the new Mercedes-Benz Citaro urban bus.

Daimler Buses also achieved a market share of 30.8 per cent in Western Europe. It’s the highest figure the company has ever recorded, up from 28.3 per cent in 2012.

Daimler says the turnaround was heavily influenced by the rollout of its GLOBE 2013 growth and efficiency program, which honed in on reducing costs, developing the European production network, and optimising various aspects of Daimler Buses’ business systems.

Schick said the future for Daimler Buses was bright.

“As things stand today, we believe we’ll be able to reach our targets for this year,” he said.

“We’re satisfied with the current level of incoming orders and we already know that our plants will be working to full capacity until the middle of the year. That applies to the production of urban buses as well as touring coaches. This is remarkable, if only because of the fact that in our sector the first half-year is traditionally slow because of the way the markets work.”

In other news, Daimler Buses recently laid the cornerstone of a new bus manufacturing facility in Chennai, India.

The plant will initially realise annual production of 1500 units, but that figure can be ramped up to 4000 per annum if required.

The facility will produce BharatBenz front-engined buses constructed using a body developed by Irish specialist Wrightbus, along with premium Mercedes-Benz rear-engined buses.

Daimler Buses back in the black

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