Daimler has set its sights on future innovations and growth as it recovers from the significant financial impact caused by the COVID-19 pandemic.
Quarter one revenue fell to €37.2 billion (-6.7%) and group net profit plummeted from €2,149 million to €168 million (-92.1%), according to its latest results. Group EBIT fell from €2,798 million to €617 million (-77.9%) and group unit sales from 773,800 to 644,300 (-16.7%).
Daimler said free cash flow for its industrial business was “particularly influenced by the global effects of the pandemic”. The group halted production in March and April to offset lower demand during the pandemic and, in early April, secured a €12 billion loan from an international banking syndicate, which can be used within a 12-month period with two extension options of six months.
In a statement, Ola Källenius, chairman of the board of management of Daimler and Mercedes-Benz, said: "The COVID-19 pandemic has substantial effects on the global economy - and our company. We took the proactive decision to stop production in March, and moved very quickly into cash preservation and cost management mode. As a consequence, Daimler ended the first quarter with a positive result and a robust liquidity.
"Now we have started with a gradual ramp-up of our production. At the same time, we are continuing to invest in key technologies, including electrification and digitalisation. They are non-negotiable elements of our future.”
