AutoBeta(AutoBeta.net)04/27 Report--

Daimler Group released its latest earnings report. Daimler's revenue in the first quarter was 39.7 billion euros, basically flat with the same period last year, and net profit was 2.15 billion euros, down 9% year-on-year. Earnings before tax (EBIT) fell 16 percent year-on-year to 2.8 billion euros, below analysts 'expectations of 2.89 billion euros.

In response, Daimler Global President Zetsche said,"We are not satisfied with the performance of the first quarter. After such a start, we need to work harder to achieve the full-year target for 2019."

Daimler said the decline was mainly due to a 4% drop in Mercedes-Benz sales, rising raw material costs and increased investment in the truck division.

In terms of sales volume, Daimler Group sold 773,800 vehicles in the first quarter of this year, down 4% year-on-year, of which Mercedes-Benz brand sold 561,000 vehicles worldwide, down 5.6% from the same period last year. Sales in China, Mercedes-Benz's biggest market, fell 3 percent to 173200 units, while sales in Europe and the U.S. declined.

Over the past year, Daimler Group's total sales rose 2.4 percent to 3.4 million vehicles, but net profit plummeted 28 percent to 7.6 billion euros ($8.6 billion). Mercedes-Benz's passenger car division sold more than 2.3 million vehicles last year, growing for the eighth year in a row and becoming the world's top-selling luxury brand, although revenue and profit margins fell last year.

Recently, there have been specific plans for Daimler's cost-cutting plan. Germany's "Manager Magazine" reported that Kang Linsong, who will succeed Cai Che as Daimler CEO on May 22, is currently promoting a cost-saving plan, planning to lay off 10000 people and cut costs by 6.75 billion US dollars. The cost-saving plan will take effect in 2021.

Daimler's partnership with Renault Nissan could also end. According to Manager Magazine, Daimler's current technology partnership with Reynolds-Nissan Alliance will be cancelled. The two sides previously shared vehicle platforms, engines and a joint factory in Aguascalientes, Mexico.

It can be said that this year will be Daimler's most special year, facing the change of leaders, poor market performance, declining performance, but also trying to cut costs, the soon-to-be CEO of Daimler Kang Linsong still faces a great test.

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