Daimler raises revenue outlook, sees potential Q2 gross sales hit from chip scarcity By Reuters
By Nick Carey
LONDON (Reuters) -Mercedes-Benz automotive maker Daimler AG (DE:) on Friday raised its revenue outlook for 2021, however mentioned the worldwide semiconductor chip scarcity might proceed to impression gross sales within the second quarter.
Daimler (OTC:) mentioned it assumed there can be some restoration in chip availability within the second half of this 12 months however there was restricted visibility at current.
Chief Monetary Officer Harald Wilhelm mentioned underlying automotive demand was sturdy, however the chip scarcity had prevented gross sales from reaching full potential.
Wilhelm, talking on a convention name with analysts, mentioned misplaced manufacturing would solely be partially recovered by the top of 2021 and the carmaker would proceed to allocate chips extra to higher-end merchandise whereas the scarcity lasts.
Automobiles have develop into more and more depending on chips for all the pieces from laptop administration of engines for higher gas financial system to driver-assistance options resembling emergency braking.
The chip scarcity has pressured a variety of automakers to curtail manufacturing, together with Basic Motors Co (NYSE:), Stellantis, Ford Motor (NYSE:) Co and Daimler’s German rival Volkswagen AG (OTC:).
Earlier this week, Daimler lower working hours for as much as 18,500 staff and mentioned it will quickly halt manufacturing at two crops in Germany as a result of chip scarcity.
However the German carmaker nonetheless expects its working revenue this 12 months to be considerably above 2020 as the worldwide financial system recovers from the coronavirus pandemic.
Daimler now expects an adjusted margin from its Mercedes vehicles and van enterprise of between 10% and 12%, up from its earlier outlook of between 8% and 10%.
The corporate additionally raised its outlook for China, saying it anticipated greater than 7.5% development in 2021, up from its earlier estimate of between 2% to 7.5%.
CFO Wilhelm instructed analysts gross sales in China to this point within the second quarter had been “simply nice” and the corporate may most likely do much more if the chip scarcity had not curtailed manufacturing.
Final week, Daimler mentioned hovering Chinese language demand for luxurious Mercedes-Benz vehicles and better costs drove a better-than-expected revenue within the first quarter.
Mercedes-Benz gross sales rose 60% in China within the first quarter. Unable to journey overseas, wealthier Chinese language shoppers have used their disposable earnings to splash out on luxurious gadgets.
This week rival BMW additionally mentioned first-quarter earnings acquired a robust bounce from gross sales in China and stronger pricing.
Chinese language consumers helped to show round 2020 for Daimler, BMW and Volkswagen (DE:), with gross sales rising within the second half of the 12 months and offsetting weaker ends in different areas.
Daimler final week unveiled the EQS, a sedan constructed on a devoted electrical automobile platform, seen as a stable contender in opposition to market chief Tesla (NASDAQ:) Inc as electrical automotive gross sales take off.
“I really feel rather more snug right now than a 12 months or two in the past that we are able to accommodate the step-up of electrical automobiles with out too sturdy a margin dilution,” CFO Wilhelm mentioned when requested about earlier Daimler predictions that electrical automobiles wouldn’t be as worthwhile as fossil-fuel fashions till the top of this decade.
“Are we at margin parity right now? No, we’re not,” he mentioned. “However we’re making progress.”
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