Mercedes 2009 Annual Report Download - page 119

Management Report |Outlook |115
We expect the Daimler Group to post EBIT of more than €2.3
billion from its ongoing business in a challenging economic envi-
ronment in 2010. This will be the result of our intensified efforts
to increase efficiency, the moderate upward developments in our
most important markets, and the market success of our new
products – especially the E-Class. Provided that the revival of unit
sales continues as expected, we should be able to improve our
profitability again in 2011. At the same time, we will keep a watch -
ful eye on the risks in the automotive value chain.
For the Mercedes-Benz Cars division, we anticipate EBIT of
more than €1.5 billion in 2010. This will be aided by higher unit
sales on the one hand and higher margins on the other. Earnings
could be reduced, however, by the ongoing very difficult competi-
tive situation in our important markets in North America, Eastern
Europe and Japan, as well as by currency effects. Another factor
is that we are making large investments in the development and
production of new drive technologies and innovative safety sys-
tems to improve our competitive position in this difficult market
environment. But in the medium term, we expect to significantly
improve the division’s profitability once again, due to the market
success of our products, the penetration of new markets, and fur-
ther efficiency improvements.
Due to increased unit sales, but probably still significantly below
the record level of 2008, the Daimler Trucks division expects
EBIT of approximately €200 million in 2010. In the context of our
Global Excellence Program, we have initiated various actions to
alleviate the impact on earnings of the currently difficult market
situation. This includes the repositioning of Trucks NAFTA and
Trucks Asia, which we started in October 2008 and May 2009
respectively. These actions have been taken with the aim of
achieving appropriate earnings in the future even in times when
production and unit-sales volumes are significantly lower than
the high levels of 2007 and 2008.
As a result of the anticipated higher unit sales in combination with
the positive effects of the efficiency-enhancing measures, we
expect the Mercedes-Benz Vans division to achieve EBIT in the
region of €250 million in 2010.
The Daimler Buses division, which achieved significantly posi-
tive earnings in 2009 despite falling demand in its core markets,
anticipates EBIT in a magnitude of €180 million in 2010.
Daimler Financial Services will continue its strategy with a focus
on efficiency enhancements in the year 2010. These actions will
include harmonizing its worldwide process and system landscape
and minimizing credit risks, and should have a positive impact
on earnings. We also expect to be able to reduce our expenditure
for credit risks once again, due to the rather more stable condi-
tion of the world economy. For these reasons, Daimler Financial
Services expects to improve its EBIT to at least €350 million in
2010.
In the reconciliation of the total for the divisions’ totals to Group
EBIT, Daimler anticipates a charge of approximately €200 million.
Against the backdrop of the financial and economic crisis and
the resulting risks, Daimler deliberately maintained higher levels
of liquidity during 2009. Also in 2010, we aim to maintain our
liquidity at levels appropriate to the general risk situation on the
financial markets and to the Group’s risk profile. As the environ-
ment begins to stabilize and due to the anticipated positive devel-
opment of earnings, Daimler will tend to reduce its liquid
resources.
In view of the Group’s net loss of €2.6 billion, the Board of
Management and the Supervisory Board have decided to pay
no dividend for the year 2009. This is solely due to last year’s
business development and earnings situation and is not related
to our expectations for the year 2010. In the coming years,
we
want our shareholders to participate in appropriate form in
Daimler’s profits once again.