Daimler has reported preliminary third quarter financial results that it says reflect a faster than expected market recovery and a particularly strong September.

The company said third quarter earnings before interest and tax (EBIT) at EUR3.07bn were well above analyst expectations (around EUR2bn).  Daimler also said that cost discipline, extensive cash preservation measures and further efficiency enhancements helped to boost cash flow.

In addition, the quarter saw the expected receipt of an EUR1.2bn dividend from Daimler’s Chinese joint venture BBAC and a positive contribution from working capital.

“The third quarter shows a very strong performance and provides further proof that we are on the right path to reducing the break-even of our company. At the same time, we continued to seize opportunities from improving markets with the great products of Mercedes-Benz Cars & Vans and Daimler Trucks & Buses. This gives us confidence to push ahead with our work both on the strategic and operational side of the business. We expect positive momentum to continue in the fourth quarter, however with the regular year-end seasonality,” said Harald Wilhelm, Member of the Board of Management of Daimler AG responsible for Finance & Controlling and Daimler Mobility.

Daimler also said it expects a positive impact for the remainder of the year, however with the fourth quarter 2020 to show the usual year-end seasonality pattern. The statement on future expectations was made under the assumption of no further COVID-19 lockdowns.

Daimler expects to publish an updated guidance for the financial year 2020 together with its full third quarter results on October 23, 2020.

See also: UK market falters, but September vehicle demand strong across globe