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MarketScreener Homepage  >  Equities  >  Xetra  >  BMW AG    BMW   DE0005190003


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Daimler hurt by production delays at Mercedes, China slowdown

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04/26/2019 | 10:26am EDT
FILE PHOTO: An illuminated logo of Mercedes is seen on the Mercedes-Benz F105 at an exhibition before the Daimler annual shareholder meeting in Berlin

FRANKFURT (Reuters) - Daimler's first-quarter operating profit fell 16 percent on Friday as a 718 million euro ($800 million) one-off gain failed to offset raw material costs, technology investments and production delays at three Mercedes-Benz factories.

Sales of Mercedes-Benz cars fell 7 percent in the first quarter in part due to manufacturing bottlenecks for the A-Class compact car in Aguascalientes, Mexico, the Mercedes-Benz Van in Charleston, South Carolina, and the Mercedes-Benz GLE sports utility vehicle in Tuscaloosa, Alabama.

Mercedes-Benz sales in China, the world's largest car market, fell 3 percent and plans to make a Mercedes-Benz pickup truck in Argentina have been abandoned after a management review, the carmaker said.

"We cannot and will not be satisfied with this, as expected, moderate start to the year. We now have to work hard to achieve our targets for 2019," Chief Executive Dieter Zetsche said in a statement to accompany his final quarterly results as boss.

Daimler blamed new suppliers for problems launching a sports utility vehicle platform, causing production delays for a new high-margin GLE model and the return on sales at Mercedes-Benz cars to fall to 6.1 percent, down from 9 percent a year earlier.

"Daimler is blaming supplier bottlenecks and quality issues pretty much across all divisions for its poor financial performance. To be clear: it's management's job to manage its supply chain and relationships with partners," Evercore ISI analyst Arndt Ellinghorst said in a note on Friday.

Earnings before interest and tax (EBIT) fell to 2.80 billion euros, below the 2.89 billion expected by analysts despite a 718 million euros valuation boost from the merger of the mobility services divisions of Daimler and BMW.

Daimler shares slipped on the news and were down 2.47 percent at 1345 GMT.

Daimler reiterated it expected slight growth in unit sales, revenue and EBIT on a group level this year, but only after cost-cutting measures are implemented.

At the same time Daimler lowered the outlook of its vans division saying the EBIT margin range would be 0 to 2 percent, rather than 5 percent to 7 percent.

Jefferies analyst Philippe Houchois said: "The outlook feels slightly optimistic given the weak start to the year."

(Reporting by Edward Taylor; Editing by Keith Weir and Elaine Hardcastle)

Stocks treated in this article : Daimler AG, Bayerische Motoren Werke AG
Stocks mentioned in the article
ChangeLast1st jan.
BMW AG 0.00% 60.35 Delayed Quote.-14.63%
BMW VZ -0.12% 49.12 Delayed Quote.-20.81%
DAIMLER AG -0.38% 41.825 Delayed Quote.-8.58%
EURO / ARGENTINE PESO (EUR/ARS) -0.05% 60.794 Delayed Quote.40.89%
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Financials (EUR)
Sales 2019 98 863 M
EBIT 2019 7 393 M
Net income 2019 5 198 M
Finance 2019 15 553 M
Yield 2019 4,98%
P/E ratio 2019 7,65x
P/E ratio 2020 6,28x
EV / Sales2019 0,24x
EV / Sales2020 0,23x
Capitalization 39 151 M
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Technical analysis trends BMW AG
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Income Statement Evolution
Mean consensus HOLD
Number of Analysts 30
Average target price 73,86  €
Last Close Price 60,45  €
Spread / Highest target 95,2%
Spread / Average Target 22,2%
Spread / Lowest Target -12,3%
EPS Revisions
Harald Krüger Chairman-Management Board
Norbert Reithofer Chairman-Supervisory Board
Nicolas Peter Chief Financial Officer
Susanne Klatten Independent Member-Supervisory Board
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