Defying the pandemic, Daimler reports a big jump in profit.
German car and truck maker Daimler said on Thursday that its net profit rose nearly 50 percent in 2020, as it managed to cut costs more than it would to compensate for the drop in sales and supply chains caused by the epidemic.
The company, which makes Mercedes-Benz cars, Freightliner trucks and other brands, is one of the traditional automakers that predicts the epidemic will accelerate their decline in irrelevance as the industry shifts to electric vehicles. Daimler’s shares tripled after hitting a low point in March 2020 and rose again on Thursday.
Daimler’s Net Profit After the 2019 sales towards the end of the year, it was up nearly 50 percent to 4 billion euros or $ 4.8 billion for the year compared to 2019. Almost all profits, 3.6 billion euros, were recorded in the fourth quarter.
For the full year, sales still fell 11 percent from 2019 to 154 billion euros. But the company made a difference and then cut spending on research and development and other measures by cutting the work force by 7,000 workers, or 4 percent of the total.
Daimler also benefited from the rapid recovery of the Chinese economy from the epidemic. China has eclipsed Europe and the United States as the company’s largest market for Mercedes-Benz cars.
The company said it was optimistic about 2021, forecasting “significant” growth in most major markets during 2021. Daimler warned that Lack of semiconductorsA problem for all car manufacturers may be the burden on sales and earnings at the beginning of the year.
Daimler chief executive Ola Callenius on Thursday refused to set an expiration date to build cars powered by internal combustion engines, such as rival General Motors Or as Jaguar Land Rover has done. But he said the company was redirecting resources to emission-free transportation.
“It is too early to make a commitment to stop the sale of gasoline and diesel vehicles,” Mr Kalenius said during a telephone conference call with reporters. “But the commitment is there. The journey is going in the same direction and we will be ready. “
Daimler This month said it would split its car and truck divisions into separate companies, long favored by investors. Mr. Kellenius said on Thursday that the amicable divorce, expected to be completed by the end of the year, would allow both divisions to react more quickly to changes in the industry.
“This is a time when agility is more important than in the past in decision making,” he said.