Daimler continues along successful path: Group EBIT of more than €7.0 billion expected for 2010

• Group EBIT in the third quarter of €2,418 million (Q3 2009: €470 million)

• Net profit in Q3 of €1,610 million (Q3 2009: €56 million)

• Revenue in the third quarter significantly above prior-year level at €25.1 billion (Q3 2009: €19.3 billion)

• Free cash flow increases to €5.3 billion in first nine months of 2010 

•  Mercedes-Benz Cars anticipates EBIT of approximately €4.5 billion for full-year 2010

• Daimler Trucks expects to post EBIT of more than €1.1 billion for the full year

In the third quarter of 2010, Daimler AG (stock-exchange symbol DAI) continued its excellent performance of the first half of the year. The automotive group achieved EBIT of €2,418 million for the reporting period (Q3 2009: €470 million). This repeated positive result was aided by the worldwide recovery of automobile markets, an attractive product range and sustained efficiency improvements.

Daimler assumes it will be able to continue along this successful path also in the fourth quarter. Dr. Dieter Zetsche, Chairman of the Board of Managementof Daimler AG and Head of Mercedes-Benz Cars: "Of course, the world economy is not yet as stable as it was before the recession, but we are confident that we will continue to operate successfully in our markets." For the year 2010, the Daimler Group now anticipates EBIT from its ongoing business of more than €7.0 billion.

In the third quarter of 2010, EBIT was boosted by a gain of €183 million that was realized upon the adjustment of health-care and pension benefits at the US subsidiary, Daimler Trucks North America. In addition, the positive verdict in a lawsuit involving Daimler led to a gain of €218 million. The special factors affecting earnings in the third quarter are shown in the table on page 8.

The good EBIT trend led to a significant improvement in net profit to €1,610 million (Q3 2009: €56 million). Earnings per share improved accordingly to €1.44 (Q3 2009: €0.04).

Unit sales up by 23% in the third quarter

In the third quarter of 2010, Daimler sold 475,100 cars and commercial vehicles worldwide, surpassing the prior-year figure
by 23%.

The Daimler Group's third-quarter revenue of €25.1 billion was 30% higher than in the prior-year quarter; adjusted for exchange-rate effects, revenue grew by 22%.

The free cash flow of the industrial business for the period of January through September increased by a significant €3.1 billion to €5.3 billion.

At the end of the third quarter of 2010, Daimler employed 259,943 people worldwide (Q3 2009: 256,857). Of that total, 164,589 were employed in Germany (Q3 2009: 163,538).

Details of the divisions in the third quarter

Mercedes-Benz Cars increased its unit sales once again in the third quarter: by 17% to 317,500 vehicles. Revenue rose by 33% to €13.7 billion.

The division achieved third-quarter EBIT of €1,299 million, which is an increase of €944 million compared to the prior-year quarter, continuing the positive trend of the first half of the year (Q3 2009: EBIT of €355 million). The return on sales improved from 3.5% to 9.5%.

Also in the third quarter, the excellent earnings resulted primarily from the high level of unit sales, especially in China and the United States, as well as from an advantageous product mix. There were positive effects also from better pricing and from the advantageous development of exchange rates and warranty expenses. There were negative effects from increased research and development expenditure.

Daimler Trucks increased its unit sales substantially to 94,800 vehicles, compared with 66,100 in the third quarter of last year. Revenue rose by 47% to €6.4 billion.

The division posted EBIT of €500 million, improving on the result for the prior-year period by €627 million (Q3 2009: EBIT of minus €127 million). The return on sales amounted to 7.8% (Q3 2009: minus 2.9%).

The positive earnings trend was mainly a result of the good development of unit sales in all major markets. Sustained efficiency improvements, in particular from the repositioning of the subsidiaries Daimler Trucks North America and Mitsubishi Fuso Truck and Bus Corporation, also had a positive impact on the development of EBIT. An additional factor at Daimler Trucks North America was a gain of €183 million from the adjustment of health-care and pension benefits. There were opposing effects from charges relating to the revaluation of long-term warranty and service obligations as well as an increase in research and development costs.

Mercedes-Benz Vans sold a total of 53,700 vehicles in the third quarter (Q3 2009: 40,100). Revenue of €1.9 billion was also significantly higher than in the prior-year period (Q3 2009: €1.6 billion).

The division reported an operating profit of €122 million (Q3 2009: €1 million). The return on sales amounted to 6.4%, compared with 0.1% in the prior-year period. The significant earnings improvement resulted primarily from the substantial increase in unit sales compared with the third quarter of last year. Sustained efficiency gains also had a positive impact on EBIT.

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