MERCEDES-BENZ GROUP AG 
By Stuttgart, March 19, 2013
Daimler Buses Seeking to Boost Sales and Return to Profitability in 2013
Numerous product launches
Growth and efficiency measures on track
Return on sales target of six percent confirmed
Financial result for 2012 negatively impacted by weak markets in Brazil and Europe, as well as by one-time charges
Daimler Buses expects to achieve higher sales and a return to profitability in 2013. The unit's optimism is based on several developments. For one thing, Daimler Buses is currently in the midst of a major product offensive. In addition, the unit continues to consistently implement its GLOBE2013 growth and efficiency program. While the market environment in Europe especially is likely to remain very challenging, other key markets such as Brazil are expected to begin expanding again.
"We plan to increase sales and revenues in 2013, and we will also make a profit - although the earnings situation at our European business remains challenging," says Head of Daimler Buses Hartmut Schick. In addition, Schick reconfirmed Daimler Buses' sales target of more than 40,000 units for 2015, as well as a return on sales target of 6% across the entire business cycle.
Successful defense of leading position in core markets
Sales at Daimler Buses declined in 2012. This negative development was largely due to the difficult situation in key markets such as Brazil and Western Europe. Global unit sales totaled 32,100 buses and chassis (2011: 39,700), although Daimler Buses was able to defend its leading position in the segment for buses over eight tons GVW in its core markets. The lower sales volume was in large part due to negative business development for chassis in Latin America.
Sales of Mercedes-Benz bus chassis in Latin America (excluding Mexico) declined by 29% to 17,800 units in 2012. The introduction of the more stringent Euro V emissions standard in Brazil in early 2012 led to a large number of advance purchases in 2011, which explains the sharp decline in sales last year. Nevertheless, Daimler Buses was able to expand its leadership in the Brazilian bus segment by boosting its market share to 44% (2011: 43%). The stable Mexican market produced the same result in 2012 as in the prior year: 3,500 units. Here as well, Daimler Buses successfully defended its leading position with a market share of roughly 48% (2011: 50%).
The sovereign debt crisis in Western Europe stalled customer demand in that region so that the bus market contracted and recorded its lowest sales volume in 20 years. Still, Daimler Buses' sales of 5,900 units were at the same level as in the prior year. As a result, Daimler Buses strengthened its leading market position in Western Europe, garnering a market share of around 28% (2011: 27%). Bus sales in Germany fell slightly to approximately 2,040 units (2011: 2,210), while sales in Turkey once again stood at 1,100 units. The Daimler Buses market share in the country rose to 51.5% (2011: 49.4%).
Hartmut Schick: "Not a lost year"
Due to the sharp sales decline in Brazil especially, as well as the difficult situation on many European bus markets, total revenues at Daimler Buses decreased by €0.5 billion to €3.9 billion in 2012. EBIT was negative at minus €232 million (2011: plus €162 million). The lion's share of the loss resulted from one-time charges of €155 million for the restructuring of the European and North American business systems. "Many of our core markets were struggling in 2012, and this was a major problem not only for us, but for other bus manufacturers as well," says Schick. "Nevertheless, 2012 was not a lost year for Daimler, as we worked hard and accomplished a lot. Today, we're leaner, more flexible, and more balanced than we were a year ago. Plus, we've made no compromises when it comes to investing in our products for the future."
Last year, Daimler Buses launched its GLOBE2013 initiative for exploiting additional growth potential and strengthening competitiveness, especially in Europe. The program aims to safeguard long-term profitability, whereby the target is to increase earnings by roughly €200 million by the end of 2014. Activities in 2012 focused extensively and successfully on the implementation of the program. Among other things, the program generated several tens of millions of euros in cost savings last year.
GLOBE2013: Implementation under way
Substantial progress was also made with measures for optimizing the Daimler Buses production network. Production of the Mercedes-Benz Travego travel coach is now concentrated at the plant in Ho
