Daimler, despite chip crisis in third quarter earnings of 2.57 billion

On a day of widespread declines, Daimler stock flies to the Frankfurt Stock Exchange (with an increase that even exceeded 2%) after announcing an increase in profits in the third quarter, despite the problems of semiconductor supplies that have had strong repercussions on production and sales. The figures released by the German group show a net profit of 2.57 billion euros in the quarter, up 19 percent compared to the same period of the previous year despite the slight decrease in turnover which fell to 40.1 billion (-200 million over 2020). Ebit rose to 3.58 billion while industrial liquidity grew again to 23.5 billion. The chip shortage mainly affected the Mercedes-Benz division, which recorded a drop in sales of about 32% to 385,000 units while if commercial vehicles are included in the count (-18% to 88,000 units), the Mercedes-Benz’s decline in sales is about a quarter on the third quarter of 2020. But what sustained the profit was above all the ‘priority’ given in terms of production to the models with higher margins, from the S-class and to the electric ones that have saw an increase in sales. In light of these results, the group believes that Ebit will be “significantly above last year’s level in 2021”. Despite a difficult scenario, “said Harald Wilhelm, Daimler’s chief financial officer,” we remain on track to achieve our goals. for the full year thanks to stronger business. “Wilhelm also highlighted” substantial progress “in the range’s electrification strategy, with a strong contribution to battery cell production coming from the planned stake in Automotive Cells Company ( ACC) Daimler then signals the progress towards the green light of the shareholders for the division of the group with the spin-off of the truck and bus division from the Cars division. In view of this separation, Daimler Truck has also begun to collect positive ratings from the main agencies: S&P Global Ratings has assigned an initial rating of BBB + with a stable outlook, while Moody’s has received a rating of A3 , again with a stable outlook. Judgments, explains the company, motivated by “confidence in Daimler Truck’s size, strong market positions in profitable markets and its sound and prudent financial policy”. The capital market day of the new company is scheduled for November 11 with an initial listing on the Frankfurt stock exchange in December. Jochen Goetz, Chief Financial Officer of Daimler Truck noted that these ratings “confirm that the company is ready to go autonomous. driven by a clear strategy and a strong financial profile. This will support our growth in the financial services segment and our ambition to achieve higher margins. “