Daimler achieves another record year in 2016

Daimler AG grew profitably once again in 2016 and achieved best-ever figures for unit sales, revenue and net profit.

In the year 2017, Daimler expects to profit from slight growth in global demand for motor vehicles and from its strengthened market position, and to further increase its unit sales in total. Accordingly, further growth in revenue and EBIT is also anticipated.

The Daimler Group posted EBIT of €12.9 billion in 2016 (2015: €13.2 billion). Due to favourable business developments in most of its divisions, Daimler slightly improved on its EBIT adjusted for special items – from €13.8 billion in 2015 to €14.2 billion in the year 2016 – thus setting a new record. 

Net profit increased to the best-ever figure of €8.8 billion (2015: €8.7 billion) and earnings per share rose to €7.97 (2015: €7.87).

Daimler increased its total unit sales in the year 2016 by 5  per cent to around 3 million vehicles, thus achieving its growth target.

The Mercedes-Benz Cars and Mercedes-Benz Vans divisions confirmed the forecasts made at the beginning of the year with significant growth (+10 per cent and +12 per cent respectively).

Daimler Trucks posted a significant decrease in unit sales of 17 per cent, due in particular to the weaker market development in the NAFTA region, the Middle East and Turkey.

Unit sales at Daimler Buses were significantly lower than in the previous year (-7 per cent) and did not reach the originally expected magnitude. This was primarily the result of the significant market contraction in Brazil.

                            Daimler sheds some workforce

Daimler achieved slight revenue growth of 3 per cent to €153.3 billion in 2016 (2015: €149.5 billion); adjusted for exchange-rate effects, revenue also grew by 3 per cent.

Compared with December 31, 2015, the net liquidity of the industrial business increased from €18.6 billion to €19.7 billion, and was thus at an appropriate level.

The increase was mainly due to the positive free cash flow of €3.9 billion. An additional factor was the cash inflow in connection with equity transactions at Daimler Financial Services (€0.7 billion).

At December 31, 2016, the Daimler Group had a total of 282,488 employees (2015: 284,015). The number of employees remained nearly stable despite an overall increase in production.

The main reason for the slight decrease was a workforce reduction at Daimler Trucks due to weak demand in major markets. The number of 170,034 people employed in Germany remained at the prior-year level (2015: 170,454). At the end of 2016, the Daimler Group had 7,960 apprentices and trainees worldwide (2015: 8,307); in Germany, 1,883 young people started their vocational training at Daimler in 2016 (2015: 1,871).

                                           Details of the divisions

Mercedes-Benz Cars division comprises the Mercedes-Benz brand with the sub-brands Mercedes-AMG, Mercedes-Maybach and Mercedes me, as well as the smart brand and the new EQ brand for electric mobility.

In 2016, Unit sales increased by 10 per cent to the new record of 2,198,000 vehicles and return on sales revenue rose by 7 per cent to €89.3 billion. Return on sales was 9.1 per cent (2015: 9.5 per cent).

Daimler Trucks’ unit sales of 415,100 vehicles were substantially lower than the high prior-year figure (2015: 502,500). Revenue decreased to €33.2 billion (2015: €37.6 billion). The division’s EBIT of €1,948 million was significantly below the high level of €2,576 million achieved in the previous year. Return on sales was 5.9 per cent (2015: 6.9 per cent).

Mercedes-Benz Vans achieved another sales record in 2016. The number of 359,100 units sold was 12% higher than in 2015. Revenue of €12.8 billion was also significantly higher than in the previous year (2015: €11.5 billion). EBIT of €1,170 million set a new record level (2015: €880 million). The division’s return on sales also increased significantly compared with the previous year to 9.1 per cent, and was thus at the targeted level (2015: 7.7 per cent).

Daimler Buses sold 26,200 buses and bus chassis worldwide in financial year 2016 (2015: 28,100). This significant decrease in unit sales was largely due to the ongoing poor economic situation in Brazil. Revenue of the Daimler Buses division increased slightly to €4.2 billion (+2 per cent). EBIT of €249 million was significantly higher than the already high prior-year level (2015: €214 million). Return on sales rose significantly to 6.0 per cent (2015: 5.2 per cent), thus reaching the targeted level.