Daimler Trucks confirms significant increase in unit sales and EBIT for 2018 and bolsters its position as a technology leader

STUTTGART, Germany and PORTLAND, Ore., June 6, 2018 /PRNewswire/ -- As part of its Capital Market & Technology Day, Daimler Trucks today confirmed its positive outlook for unit sales and earnings before interest and taxes (EBIT) and remains optimistic about its outlook for the current business year. In the Trucks division, the world's most successful manufacturer of commercial vehicles anticipates a significant increase in unit sales and EBIT compared with the previous year.

In line with this outlook, the company has already sold a total of about 21 percent more trucks in the first quarter of 2018 than it did in the equivalent period of the previous year. In the NAFTA region, unit sales in Q1 rose by a full 24 percent. Daimler Trucks was also able to increase its sales in key markets in Q1 of 2018 (EU30: +11 percent; Brazil: +66 percent and Turkey: +48 percent). This positive trend in Daimler Trucks business is expected to continue as the company is currently registering record numbers of incoming orders. In the first quarter of 2018, orders climbed by 49 percent compared with the previous year. In the traditionally profitable NAFTA region, incoming orders were up by as much as 93 percent compared to the previous year. The strong unit sales figures and number of incoming orders mean that the company can look to the future with continued optimism. Furthermore, by 2019, efficiency measures introduced in 2017 to reduce fixed costs will take full effect and contribute a total € 1.4 billion improvement in Daimler Truck's financial results.

Martin Daum, member of the Daimler Board of Management for Trucks and Buses: "In the world of trucks and buses, we're clearly number one. To ensure it stays that way, we consistently build on our strategic strengths: our global presence, worldwide platforms and our leading role in innovation. And we always keep our customers in focus. Our products have to make our customers successful for us to remain successful."

Daimler Trucks is the world's undisputed leader in the commercial vehicle market and strives to achieve an average return on sales of 8 percent ("over the cycle"), including the costs of investment in future technologies. Daimler Trucks also continues to see itself as the pacesetter in the strong, technology-driven change currently taking place in its sector. It has invested more than € 2.5 billion over the course of 2018 and 2019 in research and development, of which more than € 500 million is dedicated to electrification, connectivity and the automation of its products and services.

E-Mobility Group (EMG) turns know-how into electric drive systems

Today the company is leading the way in the electrification of commercial vehicles. The Mitsubishi Fuso Truck and Bus Corporation (MFTBC) has already delivered the first models of its fully-electric FUSO eCanter to selected customers in the USA, Europe and Japan. Its sister brand, Mercedes-Benz, will put its medium-duty eActros on the road for customers this year as well. Daimler Trucks is also working to ensure that e-mobility is economical – both for the customer and manufacturer.

In order for its electric trucks and buses to become global market leaders, the company has bundled all of its electric activities under a new organization for e-mobility: the E-Mobility Group (EMG). It will soon be defining the strategy for everything from electrical components to completely electric vehicles for all brands and all business divisions, while also working to create a single global electric architecture. EMG is globally structured, with employees working cross functional in various locations throughout the company's worldwide development network, e.g. in Portland (U.S.), Stuttgart (Germany) and Kawasaki (Japan). Effective July 1, 2018 Gesa Reimelt will establish and lead this new entity. The position reports directly to the Executive Vice President for Global Powertrain and Manufacturing Engineering Daimler Trucks, Frank Reintjes.

Martin Daum, member of the Daimler Board of Management for Trucks and Buses, said: "As the undisputed global market leader, we aim to take the leading role in the field of electric-powered trucks and buses. We started working on electric trucks at an early stage and aspire to set the benchmark in every relevant segment of this industry. By establishing our new global E-Mobility Group we can maximize the effectiveness of our investments in this strategic key technology. This will enable us to provide our customers with the best solutions in battery systems, charging systems or energy management."

Customer-oriented leader in innovation

It is the aim of Daimler Trucks to provide its customers the world over with the best vehicles that meet their specific requirements. Technological innovations serve to make the vehicles more efficient and safer for customers, as well as to connect the vehicles more intensely with one another and with the ecosystem of the customer. With its Mercedes-Benz, Freightliner and FUSO truck brands, Daimler Trucks has been delivering pioneering work in the field of automated and networked driving for years.

On an international scale, Daimler Trucks already has more than one-half million trucks connected to the Internet of Things via its FleetBoard and Detroit Connect connectivity platforms. It was also the first truck manufacturer to demonstrate digitally connected trucks – so-called platooning – on public roads in Europe, the U.S. and Japan. In the fall of 2017, Daimler Trucks presented a further possible application for future implementation of automated commercial vehicles: At an airfield in Bad Sobernheim, Germany, an automated and remote-controlled fleet of four Mercedes-Benz Arocs tractor units cleared the runway.

Uniquely strong position thanks to long-term strategy

The most successful commercial vehicle manufacturer in the world is pursuing its goals from a uniquely strong position: In 2017, Daimler Trucks was clearly ahead of its competition with a total of around 470,000 units sold. With its Mercedes-Benz, FUSO, Freightliner, Western Star and BharatBenz truck brands, as well as its Mercedes-Benz Buses, Setra and Thomas Built Buses bus brands, Daimler Trucks & Buses has an internationally strong product portfolio. It is the market leader in Germany, Europe and the NAFTA region. In Brazil, India and Japan the company also holds a leading position. Ten years ago, Daimler had already established a global presence and international platform strategy, while maintaining its historical leading role in innovation. In terms of the most important aspects in the sector, including safety, reliability and efficiency, the company had built a solid foundation for achieving sustainable growth in its commercial vehicles business. It is from this leading position that Daimler Trucks & Buses will set the tempo for newer fields of innovation, such as e-mobility, connectivity and automation. For three years now, six regional centers have been coordinating the sales and after-sales businesses around the world, thus ensuring that the business can continue to expand its operations into future growth markets in Africa, Asia and Latin America.

This document contains forward-looking statements that reflect our current views about future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "can," "could," "plan," "project," "should" and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of demand in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates; a shift in consumer preferences towards smaller, lower-margin vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; price increases for fuel or raw materials; disruption of production due to shortages of materials, labor strikes or supplier insolvencies; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending government investigations or of investigations requested by governments and the conclusion of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading "Risk and Opportunity Report" in the current Annual Report. If any of these risks and uncertainties materializes or if the assumptions underlying any of our forward-looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication.

Daimler at a Glance
Daimler AG is one of the world's most successful automotive companies. With its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is one of the biggest producers of premium cars and the world's biggest manufacturer of commercial vehicles with a global reach. Daimler Financial Services provides financing, leasing, fleet management, insurance, financial investments, credit cards, and innovative mobility services. The company's founders, Gottlieb Daimler and Carl Benz, made history with the invention of the automobile in the year 1886. As a pioneer of automotive engineering, it is a motivation and commitment of Daimler to shape safely and sustainably the future of mobility: The Group's focus is on innovative and green technologies as well as on safe and superior automobiles that appeal and fascinate. Daimler consequently invests in the development of efficient drive trains with the long-term goal of locally emission-free driving: from hightech combustion engines about hybrid vehicles to electric drive trains powered by battery or fuel cell. Furthermore, the company follows a consistent path towards intelligent connectivity of its vehicles, autonomous driving and new mobility concepts. This is just one example of how Daimler willingly accepts the challenge of meeting its responsibility towards society and the environment. Daimler sells its vehicles and services in nearly all the countries of the world and has production facilities in Europe, North and South America, Asia, and Africa. Its current brand portfolio includes, in addition to the world's most valuable premium automotive brand, Mercedes-Benz (Source: Interbrand-Study „The Anatomy of Growth", 10/5/2016), as well as Mercedes-AMG, Mercedes-Maybach and Mercedes me, the brands smart, EQ, Freightliner, Western Star, BharatBenz, FUSO, Setra and Thomas Built Buses, and Daimler Financial Services' brands: Mercedes-Benz Bank, Mercedes-Benz Financial Services, Daimler Truck Financial, moovel, car2go and mytaxi. The company is listed on the stock exchanges of Frankfurt and Stuttgart (stock exchange symbol DAI). In 2017, the Group sold around 3.3 million vehicles and employed a workforce of more than 289,300 people. With application of IFRS 15 and IFRS 9 in financial year 2017, Group revenue would have amounted to €164.2 billion and Group EBIT would have amounted to €14.3 billion. Before application of IFRS 15 and 9, Group revenue in 2017 amounted to €164.3 billion and Group EBIT amounted to €14.7 billion, as previously reported.

SOURCE Daimler North America - Corporate Communications