The key role on the roads to the drive systems of tomorrow is played by hybrid technologies which appear capable of reducing diesel fuel consumption by up to one-third. With more than 2,200 Orion hybrid buses on the roads of North America more than 500 Freightliner trucks and about 600 light trucks and Fuso buses; Daimler is the world market leader for hybrid systems in the commercial vehicle sector.
The next chart shows the EBIT development of Mercedes-Benz, over the past five quarters in the van business, market volume decreased very sharply during the fourth quarter of 2008. As a result, there was a pronounced earnings swing from Q4 2008 to Q1 2009. Counter measures taken to increase efficiency and reduce costs successfully mitigated the negative effects from the sales decrease. While unit sales declined year-over-year by 45% EBIT decreased from 212 million Euros in Q3 to just above break even in the third quarter of this year. And in this challenging business environment, Mercedes-Benz Vans was able to further strengthen its market position in the segment of mid-sized and large vans in Europe. Year-over-year our market share grew by 0.6 of a percentage point to 17% in the third quarter.
In line with all our passenger cars the Mercedes-Benz Sprinter is also available with BlueEFFICIENCY technology. On the one hand BlueEFFICIENCY stands for an efficiency package. This comprises the newly developed four-cylinder diesel engines and auxiliaries with on demand control. In addition the new six speed manual transmission designed specifically for vans reduces consumption and exhaust and noise emissions.
Finally, the BlueEFFICIENCY package also includes Eco stop function which saves up to 8% of fuel in urban operations. On the other hand the BlueEFFICIENCY technology in the Mercedes-Benz Sprinter is also available with a vehicle drive system fueled with natural gas. Sharply reduced exhaust gas and noise emissions appreciably lower lifecycle costs and a large cooling rate of some of its advantages.
Daimler Buses recorded EBIT of 23 million Euros in the third quarter of 2009 after 92 million Euros in the comparable period of last year. This decrease was particularly caused by declining demand due to the global market recession and negative exchange rate effects. The relatively good development in sales of city buses worldwide and the measures that we have initiated to enhance efficiency and reduce cost dampened the burdens on EBIT.
At the beginning of September, we delivered the 25,000 Mercedes Citaro bus. The sales volume makes Citaro the most successful city bus of all time. Daimler Buses also participated in our Future Shaping Transportation initiative. As the technology leader Daimler buses set standards in comfort and safety, for example with safety systems like the Active Brake Assist or the Front Collision Guard.
A key role of the road to tomorrow''s drive system is played by hybrid technologies. We differentiate ourselves from the competition, for example, with the Mercedes-Benz Citaro fuel cell hybrid bus presented in summer and more than 2,200 hybrid buses on the Orion brands already in use.
For our Financial Services Division the lower sales volume of the automotive divisions combined with a disciplined risk attitude resulted in a declining contract volume. At the end of the third quarter of 2009, contract volume was 58.7 billion Euros, which was 4.6 billion Euros lower than at year end 2008, adjusted for exchange rate effects, the portfolio declined by 7% since December 31, 2008.
The new business of the Financial Services Division decreased in the third quarter by 22% to 6 billion Euros. Of course, lower contract volume reduces our funding needs. We continue to review potential to further reduce the contract volume by selling non-automotive portfolio.
EBIT of Daimler Financial Services amounted 101 million Euros, a decline of 42% compared to the third quarter of 2008. The decrease was mainly due to higher cost of risk, moreover burdens on earnings rose from cost of liquidity measures. But if you look at the chart you can see the upward trend also for our Financial Services business. In the first quarter, we reacted on the weaker credit quality of our customers in light of the crisis and increased our credit reserves significantly. Which led to the substantially negative EBIT in that quarter.
On the next chart you can see an overview of the improvement of operating profitability for the Daimler Group and its division during the year. Mercedes-Benz Cars returned to profitability in the third quarter. Daimler Trucks and Mercedes-Benz Vans are still affected by very weak markets but the low point seems to have been passed in Q2 and earnings showed an upward trends. Daimler Buses maintained positive earnings throughout the crisis. All measures that have been taken to increase efficiency and reduce cost showing increasingly positive effects.
The most important goal at the beginning of 2009 was to manage the crisis and to stabilize the financial flexibility for the Daimler Group. For this reason, Daimler launched a set of new short-term measures, for example, salary cuts, short-timing working and budget cuts and many more. Those initiatives were implemented in addition to the long-term divisional efficiency enhancement programs such as [Go for Ten] at Mercedes-Benz Cars, Global Excellence at Daimler Trucks, Creating the Next at Mercedes-Benz Vans, Beyond Bus Plus at Daimler Buses and Kept Us Number One at Daimler Financial Services.
The targeted value of the 2009 counters measures was 4 billion Euros compared to 2008 numbers. By the end of Q3 2009, we had achieved 3.5 billion and for fiscal year 2009 we strive for more than 4 billion Euros. The successful and disciplined execution helped the company to better manage the crisis and to safeguard our financial position.
In respect of the short-term measures the company expects to benefit in 2010, as well. For example, the salary cuts which we will continue through mid-2010 should deliver the same benefits as this year. It is very important to mention that all of the division efficiency enhancements programs are permanent and will be continued in 2010 and beyond. That will help us to build on the improvements already achieved in 2009.
Economic developments in the third quarter confirmed hopes that the world economy has bottomed out and seems to recover again. However, there remains some uncertainty especially in the industrialized countries because the upturn is still relying on temporary effects like fiscal stimulus and inventory cycles. Overall, global GDP in 2009 is likely to shrink by a good 2% as a result of the dramatic development in the first half of the year.
In this overall environment most automotive markets remain difficult. Consequently our sales assumptions are as follows, Mercedes-Benz Cars expect to achieve sales above the Q3 level due to launch of the new E-Class station wagon and the full availability of the E-Class sedan.
In light of the market development, Daimler Trucks unit sales in the fourth quarter are expected to stay at the low level of the third quarter. And our regional mix will change. The share of sales in Asia will increase versus proportion of European sales is expected to decline. Mercedes-Benz Vans expect a slight improvement compared to the previous quarters of 2009 and Daimler Buses anticipate Q4 unit sales to increase versus the third quarter mainly due higher deliveries in connection with major orders.
Now, last but not least, let me come to our EBIT expectations for the fourth quarter 2009. Mercedes-Benz Cars EBIT in Q4 is expected to show moderate improvement compared to Q3 2009. Results from ongoing business should benefit from higher unit sales and efficiency improvements.
Our Daimler Trucks division anticipates lower earnings from ongoing business in Q4 than in Q3 due to weak demand in most important markets and a less favorable regional mix. The business repositioning at Trucks Asia and Trucks NAFTA will also result in charges in the fourth quarter.
The counter measures initiated will not fully compensate for these effects. Mercedes-Benz Vans is expected to do achieve breakeven also in the last quarter of the year. For Bus Division, we anticipate a solid EBIT in the fourth quarter. Daimler Financial Services continues to face rising credit defaults and higher refinancing expenses. Nevertheless, the division expects to achieve a positive EBIT in Q4 again.
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