German carmaker Daimler reports soaring net profit in 2020

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BERLIN, Feb. 18 (Xinhua) — Net profit of Daimler jumped 48 percent year-on-year and reached 4.0 billion euros (4.8 billion U.S. dollars) in 2020, the German carmaker announced on Thursday.

“The year 2020 was a stress test for just about every company in almost every industry. The Daimler team mastered this test very well,” said Ola Kaellenius, chairman of the board of management of Daimler AG and Mercedes-Benz AG, in a statement.

In a “challenging environment due to the COVID-19 pandemic,” annual revenues declined by 11 percent year-on-year to 154.3 billion euros, according to Daimler.

While unit sales of Mercedes-Benz Cars dropped by 21 percent in Europe and the United States last year, sales in China increased by 9 percent to 758,091 units. According to Daimler, more than 80 percent of cars sold in China were produced locally.

Mercedes-Benz, Daimler’s core brand, set a new record in China in 2020 with 774,382 passenger cars sold, achieving double-digit growth of 11.7 percent, the carmaker said last month.

Around one in three cars sold by the German carmaker were delivered to China. Mercedes-Benz sold around 2.16 million units from its core brand to customers worldwide in 2020, a decline of 7.5 percent year-on-year.

Daimler’s truck and buses division recorded a year-on-year decline in unit sales of 27 percent last year while revenues were down 22 percent, according to the German carmaker.

For 2021, Daimler is expecting unit sales, revenues, and EBIT significantly above the 2020 level. For the forecast, the company assumed an increased availability of COVID-19 vaccines and “the absence of further unexpected pandemic-related setbacks.”

“We are confident that we can maintain positive momentum if current market conditions prevail, accelerating our strategic plans and further enhancing our financial robustness,” said Kaellenius. (1 euro = 1.21 U.S. dollars) Enditem

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