Daimler, the German car and truck maker, claimed Thursday that its internet earnings rose by approximately 50 percent in 2020, as it managed to cut prices extra than plenty of to compensate for a decline in profits and provide chain disruptions induced by the pandemic.

The business, which would make Mercedes-Benz autos, Freightliner trucks and other manufacturers, is among the traditional motor vehicle makers defying predictions that the pandemic would accelerate their drop into irrelevance as the industry shifts to electric vehicles. Daimler shares have tripled considering the fact that hitting a reduced place in March 2020, and rose all over again Thursday.

Daimler’s net profit for the yr rose just about 50 per cent to 4 billon euros, or $4.8 billion, as opposed with 2019 right after revenue bounced again towards the conclusion of the yr. Virtually all of the revenue, 3.6 billion euros, was recorded in the fourth quarter.

For the comprehensive 12 months, profits however fell 11 {c9ada2945935efae6c394ba146a2811ce1f3bfd992f6399f3fbbb16c76505588} in comparison to 2019, to 154 billion euros. But the company made up the variance and then some by cutting the function force by 7,000 personnel or 4 percent of the full, lessening expenses on analysis and growth and other actions.

Daimler also benefited from the swift recovery of the Chinese financial system from the pandemic. China has eclipsed Europe and the United States as the company’s most significant marketplace for Mercedes-Benz autos.

The firm reported it was optimistic about 2021, forecasting “significant” will increase in most major markets through 2021. Daimler warned that shortages of semiconductors, a trouble for all carmakers, could be a stress on gross sales and earnings early in the yr.

Ola Källenius, the Daimler main govt, declined Thursday to set an expiration day for generating cars and trucks run by internal combustion engines, as rivals like Common Motors or Jaguar Land Rover have performed. But he stated the enterprise was redirecting assets to emissions-cost-free transportation.

“It’s a tick far too early” to make a motivation to cease selling gasoline and diesel vehicles, Mr. Källenius said throughout a phone meeting with journalists. “But the determination is there. The journey is heading in that course and we will be completely ready.”

Daimler stated this thirty day period that it would split its auto and truck divisions into individual companies, a transfer prolonged favored by buyers. Mr. Källenius explained Thursday that the amicable divorce, envisioned to be finished by the finish of the calendar year, would allow the two divisions to respond more quickly to changes in the marketplace.

“This is a time when agility in determination building is even extra crucial than it has been in the earlier,” he mentioned.