German automaker Daimler is chalking out a plan to spin off Daimler Truck by the end of the year. This plan is in its preparatory and auditing phase, the company had stated in April.
According to a Reuters report, Harald Wilhelm, Chief Financial Officer of Daimler AG, said "We are right on schedule with the detailed preparations for this complex project and want to float Daimler Truck on the stock exchange as an independent company by the end of this year."
He added, “We are convinced of the industrial logic and benefits of the planned realignment of Daimler and the spin-off of Daimler Truck."
The company’s revenue rose to €41.0 billion (Q1 2020: €37.2 billion) in the first quarter ended March 31, 2021, supported by favourable product mix and pricing. During the results announcement, the carmaker had revealed its plan for the spin-off.
During the results, Daimler said, “The transaction and the listing of Daimler Truck on the Frankfurt Stock Exchange are well on track and expected to be completed before year-end 2021.”
The company stated Daimler intends to generate value for its shareholders and to raise its profitability by creating two pure-play companies, one focused on cars and vans with the other on trucks and buses. “It is intended that a significant majority stake in Daimler Truck will be distributed to Daimler shareholders.”
It further stated the project is currently in the preparatory and auditing phase. “At an extraordinary general meeting in autumn, Daimler shareholders will have to approve this historic strategic step.”
In the first quarter of 2021, net profit was €4,373 million (as against Q1 2020 at €168 million). The company’s net profit attributable to the shareholders of Daimler AG amounted to €4,290 million (Q1 2020: €94 million), leading to an increase in earnings per share to €4.01 (Q1 2020: €0.09).