Daimler say they expect the full-year operating profit of their Mercedes-Benz cars and vans division to be above the prior-year level, but warned that the coronavirus pandemic will push the group to an operating loss in the second quarter.
The maker expect group revenue and earnings before interest and taxes (EBIT) to be below 2019 levels but given substantial one-off charges in the year-earlier period, the cars and vans division is now seen delivering EBIT above last year’s.
After closing factories in March to preserve cash and manage costs, Daimler have now “started with a gradual ramp-up” of production, CEO Ola Kaellenius says.
CFO Harald Wilhelm said on April 8 the crisis could help accelerate overhaul efforts to save €1.4bn in labor costs by 2022. The plans include slashing costs to revive margins that were already squeezed before the virus crisis escalated.
Daimler mapped out plans last year to eliminate more than 10,000 jobs worldwide in an effort to cut costs and invest in electrification.