German car manufacturer Daimler expects operating profit (EBIT) for the current year "at the level of the previous year"Despite a"sharp drop”Of expected turnover due to the Covid-19 pandemic.
The manufacturer of Mercedes Benz, which reported in a press release Friday, a "Good market development", Notes that its measures"cost control»Contributed to maintaining profitability from the third quarter, with net profit of 2.2 billion euros.
The group unveiled last week that it achieved operating profit between July and September that exceeded market expectations thanks to the recovery "faster than expected»Of activity, in particular sales in China, its main market. Until then, Daimler expected its financial results to decline.
In the second quarter, the manufacturer had cashed a loss of 1.68 billion euros due to the health crisis that led to the closure of most factories and automotive outlets. Over the first nine months, operating profit stood at 2.0 billion euros, almost half of the level reached in the same period last year.
"Daimler's transformation is a marathon"
"We successfully continued our cost-saving measures"Welcomes Harald Wilhelm, CFO, quoted in the press release. Sales of the flagship branch Mercedes Benz" Cars & Vans "fell 3% but operating profit jumped 44%.
"But Daimler's transformation is a marathon", He added, referring to the deep restructuring launched before the pandemic and strengthened since.
Daimler announced late last year a savings program with at least 10,000 job cuts to respond to the costly transition to electric and autonomous cars. The manufacturer also announced in early October that it intended to reduce its costs by 20% by 2025, the press citing 10,000 to 30,000 additional job cuts.
The group raised its forecasts based on the assumption of "normalization"Of the situation in the most important markets without"new setbacks»Linked to Covid-19 while Germany and more widely Europe are facing a second epidemic wave and an explosion in the number of contaminations.