Daimler profits fell by a third after a record-breaking sales of Mercedes-Benz

Global sales of passenger cars Mercedes-Benz for the first quarter of 2016 rose to 496,8 thousand, which is 8% higher than the result of January—March 2015 (459,708 thousand) and a new record for the first quarter of Daimler. The aggregate profit of the company for the quarter decreased by 32% (€1.4 billion) and free cash flow due to high tax payments and increased investment in production has decreased by almost nine times (€2,292 billion to €264 million).

The improvement was achieved mainly due to growth in sales in Western Europe (+14%) and China (+24%), in both of these regions, the sale also set a new record. In China it sold over 100 thousand Mercedes, and in Western Europe — more than 200 thousand, a Significant increase in sales of Mercedes-Benz brand recorded also in Australia (+29%) and South Korea (+44%), while in the U.S. sales fell (-12%).

In the report, Daimler highlights that produce all the Mercedes-Benz plants currently operating with a full load, and many completely switched to operation in three shifts.

Despite the sharp increase in the number of units sold, the company’s revenue from sales increased by only 2% from €19,509 billion to €19,98 billion In the company said that revenue was negatively impacted by declining sales of cars Executive and business class (S-class and E-class), increasing the costs of promotion and innovation, as well as currency fluctuations.

Best Daimler group results division, specializing in the production of vans and minibuses Mercedes-Benz. These machines in January—March 2016 were sold of 76.6 thousand, which is 20% over the first quarter of 2015 and is a record in the history of the company. The main engine of growth was China (+67%), North America (+36%) and Western Europe (+21%). The total revenue of the division’s Mercedes-Benz grew by 17% from €2,415 €2,815 billion.

In the report, Daimler highlights that by the end of 2016 the company plans to increase sales volumes, although the rate of growth will probably be lower than in the “exceptionally dynamic” 2015. In particular, in the second quarter are again expected to grow passenger car sales, with a special hope in the company associated with the new E-class (Mercedes-AMG E 63), new versions of cars C – and S-classes and smart cabriolets.

According to the forecast of Daimler global demand for cars in 2016 will grow by about 3%, with most of the growth provided by the Chinese market. In Russia, sales of cars, according to experts of the company, will continue to fall due to the ongoing recession.

According to the Committee automakers Association of European businesses (AEB), in 2016 the volume of sales of cars and light commercial vehicles (LCVs) in Russia will be reduced to 1.53 million units is 4.4% less than in 2015, and less than half the peak in 2012 (2.94 m). The last time so few cars on the Russian market were sold in the crisis year of 2009 (1,47 million).

Total sales of passenger cars Mercedes-Benz in Russia in 2015 decreased by 15% (up to 41,614 thousand), for the first quarter — 14% (up to 9783 pieces).

On the background of the publication of statements quotation of shares Daimler AG on the Frankfurt stock exchange fell on Friday more than 7.5%, reaching the minimum at €61.