Daimler on "upward curve"

Daimler AG set new records for unit sales, revenue and EBIT (earnings before interest and tax) in 2014, with its car, truck and van divisions all experiencing growth, while sales of Daimler buses contracted slightly.

Speaking at Daimler's AGM yesterday (February 5) in Stuttgart, Germany, the Chairman of the Board of Management of Daimler AG and the Head of Mercedes-Benz Cars, Dr Dieter Zetsche (pictured), said the group's strategy was working.

"We set new records once again in 2014 – for unit sales, revenue and earnings," he said.

"This progress is the result of consistent hard work. And it is based on decisions we made several years ago and which we have successfully implemented since then.

"That is now paying off. It is clearly tangible throughout the Group. Daimler is on an upward curve."

Daimler sold 2.5 million vehicles in 2014 – an increase over the 2013 figure of eight per cent. Mercedes-Benz cars were up 10 per cent, while vans were up nine per cent and trucks up two per cent. Unit sales of Daimler buses were slightly below the prior year's level.

Daimler sold 495,700 trucks in 2014, their highest level since 2006, while revenue rose to Euro 32.4 billion – up Euro 900,000 million. The result was driven by strong sales in North America and Japan, but tempered by soft markets in Latin America and Europe – a result of the weak economic situation and the after-effects of the introduction of Euro VI emissions standards.

Sales of Mercedes-Benz vans hit a record high in 2014 of 294,600 units – up nine per cent – while revenue increased from Euro 9.4 billion to Euro 10 billion. Sales were strong in both Europe and North America, but earnings were negatively impacted by investment in new products such as the next-generation Vito.

Daimler sold 33,200 buses last year, falling short of the previous year's tally by 500 units. However, revenue rose slightly, from Euro 4.1 billion to Euro 4.2 billion, while the return on sales rose from three per cent to 4.7 per cent.

Looking to the future, Daimler says it expects a significant increase in unit sales for trucks and vans in 2015, while it expect buses to post a slight increase.

Dr Zetsche said the group's investment in research and development – amounting to Euro 5.7 billion in 2015 – will underpin its future profitability.

"We intend to actively shape mobility in the coming years with pioneering innovations," he said.

"In order to further enhance the efficiency of our vehicles, we are working on all the important aspects – from innovative drive systems to energy management and aerodynamics to lightweight construction. In the field of autonomous driving, we have achieved a clear technological lead, which we now intend to strengthen.

"In the coming years, we want to further strengthen what has traditionally differentiated Daimler from the competition: exceptional quality and technological leadership. At the same time, we intend to reach a level of profitability that is unprecedented at this company. Combining both is the main task of our management.

"New products, new technologies or new mobility concepts, the goal is the same: we are creating opportunities for the future – for the Daimler Group and its employees."