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Daimler expects its results to increase and announces plans to split into two companies

Daimler expects its results to increase and announces plans to split into two companies

The Daimler automotive group announced this Thursday that it expects a “significant” increase in sales for 2021, despite the health situation. The automaker is also unveiling drastic changes in its structure.

 

Daimler is planning several changes in the organization of its company for the current year and would like to split into two separate groups and list its Trucks Division on the stock exchange. The Mercedes manufacturer is also expecting a significant increase in its results.

 

Indeed, the automotive group hopes to “catch up” on the production backlog caused by the shortage of electronic components in the first quarter. Daimler is “confident” that it will be able to “maintain the positive momentum if market conditions remain unchanged,” says CEO Ola Källenius in a statement.

 

While its net profit reached 4 billion euros in 2020, the automaker is 48% higher than in 2019, which was heavily impacted by extraordinary charges.

 

Preliminary results announced by Daimler on 28 January showed an operating profit of 6.6 billion euros, up sharply and better than expected by analysts. Finally, revenues amounted to 154.3 billion euros, 11% lower than in 2019.

 

The number of cars sold fell by 15% to 2.84 million units. The automaker forecasts an adjusted operating margin of between 8% and 10% for its automotive branch. In 2020, this crucial figure is 6.9%.

 

Especially in the second half of the year, we were able to achieve significantly better profitability“, Källenius is pleased to say, thanks in particular to “a good pricing policy“. “Although the current shortage of semiconductors is expected to have an impact on sales, especially in the first quarter,” the group “assumes that volumes will be recovered by the end of the year”.

 

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At the beginning of February, the Daimler Group revealed a reorganization plan, which includes the transfer of a majority stake in Daimler Trucks to the group’s existing shareholders, followed by a stock exchange listing in Frankfurt and an entry in the Dax index.

 

The automaker also announced plans to change its name to “Mercedes-Benz“, the name of its most famous brand. Additional information will be presented at the Annual General Meeting to be held in the third quarter, which will bring together shareholders to obtain their approval of this reorganization plan.

 

Read Also > LUXURY CAR: A 100% ELECTRIC TRANSFORMATION FROM 2025 FOR JAGUAR

 

Featured Photo : © Daimler

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