Daimler sees currency effects tempering Mercedes revenue growth

The profitability of its luxury cars division was dented by higher expenses for revaluing the leasing portfolio in Germany, Daimler said. (Reuters)
Updated 27 April 2018
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Daimler sees currency effects tempering Mercedes revenue growth

FRANKFURT: Daimler said currency headwinds will dampen revenue growth at its Mercedes-Benz luxury vehicles division this year, after foreign exchange effects and the absence of one-off gains pushed the group’s first-quarter operating profit 12 percent lower.
Daimler’s Chief Financial Officer Bodo Uebber said the company now expected a burden on earnings this year in excess of 1 billion euros tied to currency effects and the strong euro.
Group earnings before interest and taxes (EBIT) dropped to €3.34 billion in the three months through March, below analyst expectations.
Results in the year-earlier quarter were boosted by the reversal of an impairment of Daimler’s equity investment in BAIC Motor Corp. and the valuation of a stake in map maker HERE.
The return on sales at its Mercedes-Benz Cars division inched up to 9 percent in the first quarter, from 8.9 percent a year earlier, thanks to a 5 percent rise in car sales to 594,299 vehicles, the company’s best ever quarter for luxury sales.
The profitability of its luxury cars division was dented by higher expenses for revaluing the leasing portfolio in Germany, Daimler said.
Although Mercedes-Benz expects to continue posting new sales records, revenue growth will be impacted going forward, the Stuttgart-based carmaker said.
“At Mercedes-Benz Cars, the expected exchange rate developments and lifecycle effects will dampen the development of revenue, so the division is expected to post full-year revenue at the high level of 2017,” Daimler said.


Saudi Arabia and Spain’s Navantia plan combat management systems venture

Updated 18 February 2019
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Saudi Arabia and Spain’s Navantia plan combat management systems venture

  • The SANNI venture will integrate and adapt Navantia’s combat management systems for Saudi navy corvette ships

ABU DHABI: State-owned Saudi Arabian Military Industries (SAMI) signed an agreement on Monday with Spanish state-held shipbuilder Navantia to set up a joint venture to provide combat systems, the new partnership’s chief executive said on Monday.
The SANNI venture, the name of which stands for SAMI Navantia Naval Industries, will integrate and adapt Navantia’s combat management systems for Saudi navy corvette ships, said Antonio Barberan at the IDEX military exhibition in Abu Dhabi.
SANNI is also in talks with other potential customers in the Middle East, he said.
SAMI owns 51 percent of SANNI, with Navantia holding the remaining 49 percent.
In November SAMI and Navantia signed an agreement to jointly manufacture five corvettes for the Saudi navy.