Daimler achieves EBIT of €2,053 million in second quarter of 2008

Daimler achieves EBIT of €2,053 million
Investor Relations
in second quarter of 2008
Release



Date:
• Net profit of €1,395 million (Q2 2007: €1,849 million)
July 24, 2008
• Earnings per share of €1.40 (Q2 2007: €1.74)
• Unit sales up by 10% to 566,500 cars and commercial vehicles
• Revenue up by 6% to €25.4 billion, adjusted for exchange-rate
effects up by 11%
• Full-year EBIT from ongoing operations (excluding Chrysler)
expected to exceed €7 billion

Stuttgart - Daimler AG (stock-exchange abbreviation DAI) continued its
successful development of the prior quarter with a very good second
quarter of 2008. “Strong unit sales and further efficiency
improvements in all of our divisions led to very good results in a
difficult environment,” stated Dr. Dieter Zetsche, Chairman of the
Board of Management of the Daimler Group.
Daimler achieved EBIT of €2,053 million in the second quarter of this
year (Q2 2007: €2,134 million).
The Mercedes-Benz Cars and Daimler Trucks divisions were able to
slightly increase their earnings. The Mercedes-Benz Vans and Daimler
Buses units also achieved higher EBIT.
The decrease in Group earnings was mainly related to Daimler’s
interest in Chrysler (charges of €373 million). (Special items are shown
in the table on page 7).
Net profit amounted to €1,395 million (Q2 2007: €1,849 million),
equivalent to earnings per share of €1.40 (Q2 2007: €1.74).

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Unit sales up by 10% in the second quarter
Page 2
In the second quarter of 2008, Daimler sold 566,500 cars and
commercial vehicles worldwide, surpassing the figure for the
prior-year period by 10%.
Daimler’s second-quarter revenue increased from €23.8 billion to
€25.4 billion (+6%). Adjusted for exchange-rate effects and changes in
the consolidated group, revenue growth amounted to 11%.
At the end of the second quarter of 2008, Daimler employed 274,999
people worldwide (end of Q2 2007: 271,486). Of this total, 168,342
were employed in Germany (end of Q2 2007: 166,581).
Details of the divisions in the first quarter of 2008
Mercedes-Benz Cars increased its unit sales by 11% in the second
quarter. Unit sales of Mercedes-Benz brand vehicles grew by 9% to a
new record of 312,000 vehicles. smart once again achieved a
significant increase in unit sales of 24%, selling 39,500 vehicles.
Revenue rose by 3% to €12.9 billion.
The division increased its EBIT by 1% to €1,212 million. The slight
increase in earnings was partially due to the positive unit-sales trends
for both the Mercedes-Benz and the smart brands. The good
development of unit sales was primarily driven by the C-Class models
and the smart fortwo. Additional contributions to the improved
earnings came from ongoing growth in car sales in the emerging
markets, especially China and Russia, and from further efficiency
improvements. Unfavorable exchange-rate effects, higher raw-material
prices and higher costs for the development of technologies to reduce
CO₂-emissions negatively affected EBIT in the second quarter of 2008.

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Daimler Trucks sold 122,800 vehicles in the second quarter of 2008, Page 3
significantly more than in the prior-year period (+10%), despite the
ongoing weakness of the US economy. Revenue increased from
€6.9 billion to €7.4 billion.
The Daimler Trucks division posted EBIT of €608 million, thus slightly
exceeding its earnings in the second quarter of last year (€601
million). The result for the prior-year quarter was favorably affected
by a special gain of €68 million realized on the sale of real-estate
properties in Japan.
The division’s improved earnings are mainly the result of the good
development of unit sales in Europe, Latin America and some other
markets, a positive product mix, and efficiency improvements. There
were negative effects on earnings, however, from the continued
difficult economic environment in the United States and higher
raw-material prices.
Trucks Europe/Latin America (Mercedes-Benz) increased its unit sales
by a further 17% to 46,500 vehicles, thus setting another record.
Trucks NAFTA (Freightliner, Sterling, Western Star, Thomas Built
Buses) increased its unit sales by 11%. The figure for the prior-year
quarter had been impacted by a drop in demand due to stricter
emission regulations in the United States and Canada. The unit sales
attained by Trucks Asia (Mitsubishi Fuso) increased from 47,800 to
49,200 vehicles.
Daimler Financial Services increased its total contract volume by
4% to €60.4 billion in the second quarter of 2008. Compared with the
prior year, 15 additional companies were fully consolidated for the first
time, most of them in Asia and Eastern Europe. Adjusted for this effect
and for exchange-rate effects, the increase was 8%. New business of
€7.8 billion was 6% higher than in the second quarter of 2007.

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EBIT of €183 million reported by Daimler Financial Services for the
Page 4
second quarter of 2008 was lower than the result for the prior-year
period (Q2 2007: €220 million). The decrease in earnings was mainly
due to higher cost of risk compared to the low levels of the prior-year
quarter. Furthermore, there were higher expenses related to setting up
the new financial services organization in the NAFTA region following
the separation from Chrysler. There was a positive impact on earnings,
however, from the increased contract volume.
The second-quarter EBIT of the Vans, Buses, Other segment
amounted to €148 million (Q2 2007: €257 million). Mercedes-Benz
Vans and Daimler Buses benefited from the continued very positive
development of unit sales and both achieved higher earnings.
Mercedes-Benz Vans reported EBIT of €262 million and Daimler Buses
reported EBIT of €170 million.
The Mercedes-Benz Vans unit increased its unit sales by 7% in the
second quarter of 2008, setting a new record of 78,600 vans sold in
a quarter.
Daimler Buses sold 11,100 buses and chassis, thus surpassing the
very high prior-year sales level by 7% and setting a new unit-sales
record.
Daimler’s share of the earnings of EADS amounted to €32 million
(Q2 2007: €95 million). Our interest in Chrysler negatively affected
EBIT in the second quarter of 2008 by €373 million; this result
includes proportional expenses of €93 million resulting from the
restructuring measures at Chrysler. As the Group generally applies the
equity method of accounting for its interests in EADS and Chrysler
with a three-month time lag, these figures mainly reflect the
developments in the first quarter of this year. The results in connection
with our interest in EADS and Chrysler are not cash effective.

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The results for Chrysler are by no means indicative for the results to
Page 5
be reported by Chrysler Holding LLC due to substantial valuation
differences between US-GAAP used by Chrysler and IFRS accounting
used by Daimler.
During the second quarter, Daimler acquired 22.3% of the shares in
Tognum AG from EQT, a Swedish financial investor, and an additional
2.2% through the stock market for a total of €640 million. Tognum is
included in the Vans, Buses, Other segment as of June 30, 2008 using
the equity method of accounting. There was no earnings contribution
from Tognum in the second quarter of 2008.
Outlook
Although the headwind for the automotive industry and also for
Daimler has become stronger as a result of the slowdown of global
growth and the weak economy in the United States, Daimler continues
to assume that its divisions will be able to achieve their unit-sales
targets for full-year 2008.
Based on the divisions’ planning, Daimler expects total unit sales to
increase in the year 2008 (2007: 2.1 million vehicles).
Mercedes-Benz Cars expects to increase unit sales in the year 2008.
The full availability of the new C-Class sedan and station wagon as well
as the new smart fortwo will make a big contribution to this sales
increase. In the second half of the year, we expect new sales stimulus
from the recently introduced A- and B-Class models, the CLS, SLK, SL
and the new CLC. The launch of the refreshed M-Class and especially
the new GLK in late 2008 will also provide additional sales momentum
in the following year. However, for lifecycle reasons, the division
expects unit sales of the E-Class to fall somewhat, as this car is in its

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last full model year. In view of the worsening economic environment,
Page 6
production output will be adjusted compared with the previous
planning. The changed market outlook, rising raw-material prices and
ongoing negative exchange-rate effects will also lead to burdens on
earnings that cannot be fully offset by our significant efficiency
improvements and higher unit sales. EBIT is therefore expected to be
lower than in the prior year, with a return on sales in the magnitude of
8%.
Daimler Trucks looks forward to rising unit sales in full-year 2008.
This is largely due to the positive developments in Europe and growth
in Asian markets. Higher material costs and the effects of the weaker
US economy will offset this positive development. Overall Daimler
Trucks anticipates full-year earnings in the magnitude of €2 billion.
Daimler Financial Services anticipates a moderate increase in its
worldwide contract volume in full-year 2008. Despite the expenses
connected with setting up its own financial services organization in
North America, the division continues to assume that it will achieve a
return on equity of at least 14% in the full year.
Due to strong demand for the Sprinter and the positive sales trend of
the Vito/Viano, Mercedes-Benz Vans expects significant growth with
a new unit-sales record in 2008.
Daimler Buses also expect to match the high level of unit sales
achieved in the prior year once again.
The Daimler Group anticipates a slight increase in the total revenue in
full-year 2008 (2007: €99.4 billion).

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The Daimler Group believes it continues to be very well positioned
Page 7
with regard to the competition. However, it will not be possible to fully
compensate for the aforementioned negative macroeconomic factors
such as the slowdown of global growth, rising raw-material prices and
unfavorable exchange-rate effects by means of higher unit sales and
further efficiency improvements. Dr. Dieter Zetsche: “We have
prepared the Group well for this situation and fulfill all the
requirements to rank among the best in our industry also in more
difficult times.”
On the basis of the divisions’ projections, the Daimler Group expects
to post EBIT from ongoing operations of more than €7 billion in 2008.
Effects related to Chrysler are not included therein. Daimler had
previously anticipated EBIT from ongoing operations of significantly
above the prior year’s level (€7.7 billion).

Special items affecting EBIT


Amounts in millions of €
Q2 2008
Q2 2007
Daimler Trucks


Sale of real estate in Japan
-
68

Vans, Buses, Other


Gain (loss) related to the transfer of shares in
35
(39)
EADS





Restructuring program at Chrysler
(93)
-



Impairment of rights due to reduced residual
(17)
-
values of Chrysler vehicles

Reconciliation


New management model
(63)
(42)




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Page 8

This document contains forward-looking statements that reflect our current views about
future events. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,”
“may,” “plan,” “project,” “should” and similar expressions are used to identify forward-
looking statements. These statements are subject to many risks and uncertainties,
including an economic downturn or slow economic growth in important economic regions,
especially in Europe or North America; the effects of the credit crisis which could result in a
weaker demand for our products particularly in the U.S. but as well in the European market;
changes in currency exchange rates and interest rates; the introduction of competing
products and the possible lack of acceptance of our products or services; price increases in
fuel, raw materials, and precious metals; disruption of production due to shortages of
materials, labor strikes or supplier insolvencies; a decline in resale prices of used vehicles;
the business outlook for Daimler Trucks, which may be affected if the U.S. and Japanese
commercial vehicle markets experience a sustained weakness in demand for a longer
period than expected; the effective implementation of cost reduction and efficiency
optimization programs; the business outlook of Chrysler, in which we hold an equity
interest, including its ability to successfully implement its restructuring plans; the business
outlook of EADS, in which we hold an equity interest, including the financial effects of
delays in and potential y lower volumes of future aircraft deliveries; changes in laws,
regulations and government policies, particularly those relating to vehicle emissions, fuel
economy and safety, the resolution of pending governmental investigations and the
outcome of pending or threatened future legal proceedings; and other risks and
uncertainties, some of which we describe under the heading “Risk Report” in Daimler’s
most recent Annual Report and under the headings “Risk Factors” and “Legal Proceedings”
in Daimler’s most recent Annual Report on Form 20-F filed with the Securities and
Exchange Commission. If any of these risks and uncertainties materialize, or if the
assumptions underlying any of our forward-looking statements prove incorrect, then our
actual results may be materially different from those we express or imply by such
statements. We do not intend or assume any obligation to update these forward-looking
statements. Any forward-looking statement speaks only as of the date on which it is made.

Further Investor Relations information on Daimler is available on the Internet via
www.daimler.com/investors and on handhelds via http://mobile.daimler.com.

If you have any questions, please contact our Investor Relations Team:

Dr.
Michael
Mühlbayer Friedrich
Lauer
Tel. +49/711-17-93139

Tel.
+49/711-17-92286
Fax +49/711-17-95235


Fax +49/711-17-95235

Michael.Muehlbayer@daimler.com
Friedrich.Lauer@daimler.com

Lutz Deus




Bjoern Scheib
Tel. +49/711-17-92261

Tel.
+49/711-17-95256
Fax +49/711-17-94075 Fax
+49/711-17-94075
Lutz.Deus@daimler.com


Bjoern.Scheib@daimler.com

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Figures for the 2nd Quarter 2008/First Half-Year 2008
Daimler Group
Q2
Q2
Change
YTD
YTD
Change
amounts in €
2008
2007
08/07
2008
2007
08/07
Revenue, in millions
25,382
23,844
6% 1)
48,837
47,214
3% 2)
EBIT, in millions
2,053
2,134
- 4 %
4,029
5,426
- 26 %
Net profit, in millions
1,395
1,849
- 25 %
2,727
3,821
- 29 %
Net profit from continuing operations, in millions
1,412
1,443
- 2 %
2,747
4,158
- 34 %
Earnings per share (EPS)
1.40
1.74
- 20 %
2.70
3.64
- 26 %
Employees (June 30)
274,999
271,486
+ 1 %
274,999
271,486
+ 1 %
EBIT by Divisions
Q2
Q2
Change
YTD
YTD
Change
in millions of €
2008
2007
08/07
2008
2007
08/07
Mercedes-Benz Cars
1,212
1,204
+ 1 %
2,364
1,996
+ 18 %
Daimler Trucks
608
601
+ 1 %
1,011
1,129
- 10 %
Daimler Financial Services
183
220
- 17 %
351
434
- 19 %
Vans, Buses, Other
148
257
- 42 %
519
2,129
- 76 %
Mercedes-Benz Vans 3)
262
-
-
448
-
-
Daimler Buses 3)
170
-
-
245
-
-
Revenue by Divisions
Q2
Q2
Change
YTD
YTD
Change
in millions of €
2008
2007
08/07
2008
2007
08/07
Mercedes-Benz Cars
12,921
12,558
+ 3 %
25,418
24,628
+ 3 %
Daimler Trucks
7,385
6,930
+ 7 %
13,712
14,220
- 4 %
Daimler Financial Services
2,231
2,095
+ 6 %
4,474
4,247
+ 5 %
Vans, Buses, Other
4,074
3,376
+ 21 %
7,522
6,258
+ 20 %
Mercedes-Benz Vans
2,557
2,284
+ 12 %
4,892
4,344
+ 13 %
Daimler Buses
1,321
1,076
+ 23 %
2,240
1,889
+ 19 %
Unit Sales
Q2
Q2
Change
YTD
YTD
Change
in units
2008
2007
08/07
2008
2007
08/07
Daimler Group
566,500
516,400
+ 10 %
1,070,300
976,600
+ 10 %
Mercedes-Benz Cars
354,000
320,200
+ 11 %
672,300
591,200
+ 14 %
Daimler Trucks
122,800
112,100
+ 10 %
230,500
231,300
-0%
Mercedes-Benz Vans
78,600
73,800
+ 7 %
147,300
135,500
+ 9 %
Daimler Buses
11,100
10,300
+ 7 %
20,200
18,600
+ 9 %
1) Adjusted for the effects of currency translation and changes in the consolidated Group, increase in revenue of 11%.
2) Adjusted for the effects of currency translation and changes in the consolidated Group, increase in revenue of 7%.
3) In light of the growing relative share of the van und bus business, Daimler Group starts disclosing the EBIT figures for Mercedes-Benz Vans and
Daimler Buses in Q1 2008.

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