Revenue and earnings
We assume that the revenue of the Daimler Group will also increase slightly i
Our divisions have very attractive product ranges, which have been expanded and systematically renewed in recent years. We assume that Daimler will profit from this fact also under partially difficult market conditions, and will be able to strengthen or defend its position in major markets. At Mercedes-Benz Cars, additional revenue growth should be ensured i
The growth in unit sales and revenue that we anticipate should have a generally positive impact on earnings i
However, earnings will be reduced by the continuation of very high expenditure: for our model offensive, for innovative technologies (especially for reducing fuel consumption and for electrification), for the digitization of our products and processes, and for the expansion and modernization of our worldwide production capacities. Furthermore, rising raw-material prices are leading to a significant increase in material costs, and exchange-rate effects are also likely to be negative overall. Another factor is that for the yea
On the basis of the market developments we anticipate, the aforementioned factors and the planning of our divisions, we assume, however, that Group EBIT i
- The individual divisions have the following expectations for returns i
- Mercedes-Benz Cars: return on sales of
6 %to 8 %
- Daimler Trucks: return on sales of
7 %to 9 %
- Mercedes-Benz Vans: return on sales of
5 %to 7 %
- Daimler Buses: return on sales of
5 %to 7 %
- Daimler Financial Services: return on equity of 1
7 %to 1 9 %
At Mercedes-Benz Cars, positive effects will result from the anticipated growth in unit sales. There will be negative effects, however, from currency exchange rates and the continuation of very high expenditure for new technologies and vehicles. In addition, rising raw-material prices will lead to a significant increase in material costs.
Daimler Trucks, Mercedes-Benz Vans and Daimler Buses should profit from rising unit sales and the efficiency-enhancing measures. A negative impact is likely also in these divisions from the development of prices in the raw-material markets. Furthermore, earnings at Daimler Trucks are likely to be impacted by higher expenditure for new technologies and future Products.
The return on equity expected at Daimler Financial Services on the one hand takes into consideration significant positive effects on assets and earnings from the planned merger of the mobility services of Daimler and BMW. On the other hand, we expect the division’s earnings to be reduced by the normalization of credit-risk costs and further investment in advancing digitization and mobility services. Further growth in contract volume should have a positive impact on earnings.