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Earnings Calls: 
Daimler AG Q3 2009 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 7:19 AM ET November 02 2009


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Daimler AG third quarter revenues fell 21% to €19.3 billion and net profit fell 79.5% to €41 million or €0.04 a share.

 
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Adam Hull - WestLB

Okay. Thank you.

Michael Muhlbaye

We take the next question from Daniel Schwartz, Commerzbank.

Daniel Schwartz - Commerzbank

Yes, hello, Daniel Schwartz. I have one question again regarding the negative impact from dealers and suppliers in the fourth quarter. Is it included in the segmental guidance for Mercedes? Or may that come on top of what you currently expect in the fourth quarter? And second question would be whether you could comment on the coalition contract of [German] Government especially with the plans regarding the company contexts. And the final or third question would be the investment decision for the Rastatt plan of 600 million Euros. Does that imply advanced negotiations with the corporation partner or would that be independence from your future strategy regarding small cars?

Bodo Uebber

Of course, Daniel, to your first question it depends on the magnitude of impact, if you would have a higher impact on the dealer and supplier side of course it is extraordinary maybe we would disclosed as extraordinary impact and therefore it is not included in our guideline. If it could be on a reasonable level then what we have seen in the third quarter of course it is a number which is not over exceeding our internal threshold of doing a public announcement with a special reporting item which we would then normally do.

On the coalition side in Germany the company car stuff of course it's helping everything helps. So, if we get here a leeway that we can use the real price in the market for the company costs which we are not allowed to do today, of course it would certainly have an impact which is difficult to forecast at the end of the day. But as I said every positive impact we would help us also for the sales in 2010 and we hope then it would then also get into the Minister of Finance that they will change within this direction as it is mention in the coalition program.

The Rastatt investment is by no means has no -- any relation and tied to a discussion of a corporation partner. It is fully stand alone.

Daniel Schwartz - Commerzbank

Okay. Thank you.

Michael Muhlbaye

Next question is from Frank Biller.

Frank Biller - LBBW

Hello, this is Frank Biller from LBBW. Just two questions, the one is related on the Mercedes side, maybe you can give us an update on the incentives in Europe and how is it developing over the next month or over the last couple of months and also the future. And the other thing is on EBIT Mercedes you talked about slightly better earnings line in Q4 versus Q3. Does that mean you are significantly above four percentage points in EBIT margin or is it more in the range of Q3?

The other question is related to the Truck side. Revenues per unit are sharply fell versus Q2. Maybe you can give us hear an explanation why that truck by more than 11,000 units.

Bodo Uebber

So, Frank, your question regarding incentives levels can only confirm that in the third quarter we had lower incentive spending than we had in the first half. You know that we also have commented on that in the first half. Of course, we had the inventories, you know that. And of course, we also know that we have a new E-Class on board which goes together. So, having gotten down the inventories to benchmark levels at the end of the second quarter and on top of the E-Class introduction of a new product leads to a lower incentive level and this positive development I do think we will also see in the fourth quarter. Your second question was regarding -- can you help me again?

Frank Biller - LBBW
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