Daimler achieves record earnings; China being the growth engine

Stuttgart-based automaker Daimler AG grew profitably again in 2015, once more achieving record levels of unit sales and earnings before interest and taxes, with contributions from all divisions.
In particular, China was a bright spot for the company, with growth rate in retail figures significantly out pacing its major competition in the passenger car segment in 2015.


With attractive and highly competitive product ranges across all of the company's divisions, the group expects 2016 to be another strong year, with profits above-average thanks to the anticipated slight growth in global demand for automobiles.


Daimler hopes that this in turn will strengthen its position in major markets, and further increase its unit sales.


"2015 was a good year for Daimler," said Dieter Zetsche, chairman of the Board of Management of Daimler AG and head of Mercedes-Benz Cars, at opening of the 2016 Annual Press Conference. "We know from experience: Getting to the top is hard, but staying at the top is even harder. That's our ambition. Daimler belongs at the top on a sustained basis." In financial year 2015, the group achieved its best ever earnings before interest and taxes (EBIT), 13.5 billion euros ($15.1 billion), much higher than 10.8 billion euros in 2014. And its net profit of 8.9 billion euros was significantly higher than 7.3 billion earned the previous year. Earnings per share increased to 8.08 euros from 6.51 euros in 2014.


Daimler significantly increased its total unit sales in 2015. The number of around 2.9 million vehicles sold was 12 percent higher than in 2014. This growth was primarily driven by the Mercedes-Benz Cars division and to a lesser extent by Mercedes-Benz Vans. Daimler Trucks increased its unit sales to the highest level


since the year 2006. Driven by the growth in unit sales, Daimler group increased its total revenue by 15 percent to 149.5 billion euros in 2015.


"The development of earnings at the Daimler Group over recent years clearly shows that our strategy is working and that we are growing profitably," said Bodo Uebber, member of the Board of Management of Daimler AG responsible for finance and controlling and Daimler Financial Services."Compared with 2010, our earnings have actually almost doubled. And revenue has increased by more than 50 percent in the past five years." The net liquidity of the industrial business increased to 18.6 billion euros at the end of 2015 from 7.0 billion euros in 2014.


The article transsshipment from China Daily