Daimler AG (ETR: DAI) reported record results by the end of FY17 with an increase in vehicle sales of 9 percent, totaling 3.27 million vehicles globally. This represented €164.3 billion (US$204.5 billion) in revenue and €10.9 billion (US$13.6 billion) in net profit, both numbers up 7 and 24 percent respectively compared to the results from FY16.
According to the company’s year-end report, all of Daimler’s business units showed stronger results. With over 2.37 million units sold and production of 2.41 million vehicles globally, Mercedes-Benz Cars was the main source of revenue for the company, representing 57.6 percent of the total. The brand had the most success in Europe with 42.7 percent of the total sales, up 8 percent compared to FY16, followed by Asia with 36.2 percent and an increase of 20 percent.
China alone accounted for 26 percent of all Mercedes-Benz Cars sales, which Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, sees as a key component in the company’s positive results. “This success is the result of our hard work during the past few years,” he said at Daimler’s annual press conference. “For example, we have aligned our products with the requirements of Chinese customers, substantially expanded our local production and optimized our sales organization. This has enabled us to take a major step forward in the world’s biggest automotive market.”
Daimler Trucks was the next-best performing segment in the company with sales of 470,705 units and production of 476,325 vehicles, leading to revenue of €35.7 million (US$44.4 billion). Strong numbers resulted in an increase in revenue of 8 percent and EBIT of 22 percent. Furthermore, the company expects similarly positive results for FY18 with incoming orders reported at the end of FY17 of 500,590 units, up 30 percent from FY16. Unlike Mercedes-Benz Cars, the NAFTA region was the main driver of growth in the Trucks segment with 35 percent of the total sales, followed by Asia with 31.6 percent.
Diamler Financial Services was the third-main contributor to the company with €23.7 billion (US$29.5 billion) in revenue, followed by Mercedes-Benz Vans and Daimler Buses accounting for €13.2 billion (US$16.4 billion) and €4.4 billion (US$5.5 billion) respectively.
Mobility is also becoming a relevant participant in the company’s development strategy. According to Bodo Uebber, Member of the Board of Management of Daimler AG for Finance & Controlling and Daimler Financial Services, Daimler Mobility Services was present in 100 cities in 18 countries by the end of 2017. The company is focusing its efforts on car sharing, ride hailing and multimodal platforms with solutions such as car2go, mytaxi and moovel. “In the short and medium term, we will develop a fast-growing additional market segment with our mobility services,” says Uebber. “Even more important is that as soon as the technology is ready, these services will be the entry point into fully automated car services.”
For FY18, Daimler’s outlook for the company’s development is equally positive. According to the company’s press release, sales will slightly increase thanks to a strong portfolio and ongoing growth in the global automotive market. “We are acting from a position of strength,” says Zetsche. “Our ambition is unchanged: Daimler belongs at the top.”
The data used in this article was sourced from Daimler AG. If you want to learn more about the company’s presence in Mexico, check out our feature analysis in Mexico Automotive Review 2017.