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Daimler AG Q3 2009 Earnings Call Transcript
Author: 123jump.com Staff
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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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Your second question regarding CapEx, of course CapEx development on the one hand there is one part which is also related to do products which we cannot really impact because we have this new product and then we have a new tooling and then we will of course expense it.

On the other hand in the crisis right now, we try also to be very aware what we spend what not. So, today, let say, what we are heading two years of course lower than 2008. It''s might be higher in the fourth quarter on the one hand because we have postponed some spending on the one hand. And also for 2010, I don''t see here right now you might take this with you not very further room for decreasing there''s more room for so to say investing into the product side for 2010.

On the FX side of course we don''t comment you on the numbers we have one quarter you see on the profit [work] but the effect is regarding the third quarter and you know the year-to-date numbers so to say, for 2010 we are hedged by 60% for the U.S. dollar for the British pound and we are more than 60% on the Japanese Yen. But, of course, the currency, of course, and something we not only look at when the dollar is $1.50 it''s always a concern but the $1.50 level of course is a concern and will give us some thinking about how to offset this kind of stuff. It will impact certainly also the year 2010 and especially the pound of course has developed in a direction where we also have to take measures maybe on the pricing side in the U.K. and then Yen and it is something which we are watching very closely. Thank you.

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.
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