German carmaker Daimler reports falling profits for fiscal 2019

For the fiscal year of 2019, earnings before interest and taxes (EBIT) of German carmaker Daimler fell by more than 60 percent to 4.3 billion euros (4.7 billion U.S. dollars), the company announced on Tuesday.

“While our results in 2019 reflect ongoing strong customer demand” for Daimler products, “we cannot be satisfied with our bottom line,” said Ola Kaellenius, chairman of the Board of Management of Daimler AG and Mercedes Benz AG.

Although revenues increased by three percent, Daimler’s net profit went down to 2.7 billion euros from 7.6 billion euros in the previous year, according to preliminary company figures.

The sale of 3.34 million passenger cars and commercial vehicles had been in the “magnitude of the previous year,” Daimler said.

Although the expansion of electric mobility requires “enormous technical and financial efforts,” the company said that “the future of the Daimler Group lies in CO2-neutral mobility as well as in consistent digitization.”

Measures to cut expenses include “significant reduction of material and administrative costs” and of “personnel costs by more than 1.4 billion euros by the end of 2022,” Daimler said.

The Board of Management and the Supervisory Board of Daimler are planning to propose a dividend of 0.90 euro per share. In 2018, Daimler distributed 3.25 euros per share to its shareholders.

Following the announcement, the shares of Daimler listed on the DAX went up by around two percent in early trading on Tuesday.