Daimler sees FY14 industrial free cash flow significantly lower than last year Daimler is reviewing its guidance for the free cash flow of its industrial business excluding the effects of acquisitions and disposals for FY14. Hitherto, Daimler had assumed that the free cash flow of the industrial business adjusted for the effects of acquisitions and disposals would probably be significantly lower in 2014 than in the previous year. The individual divisions continue to aim for the following EBIT from the ongoing business in FY14: Mercedes-Benz Cars: significantly above the prior-year level, Daimler Trucks: significantly above the prior-year level, Mercedes-Benz Vans: at the prior-year level, Daimler Buses: significantly above the prior-year level, and Daimler Financial Services: slightly above the prior-year level.
Wells says Daimler decision to make engines negative for Cummins Wells Fargo says Daimler's (DDAIF) announced intention to begin producing medium truck engines for its North American applications beginning in early 2016 is a negative for Cummins (CMI). Wells believes Daimler's decision is a threat to Cummins' supply relationship with Daimler's North American truck business. The firm estimates Cummins realized 45K engines and after-treatment systems to Daimler's North American Class 6-7 truck business over the twelve months ending August 2014. It has a Market Perform rating on the stock.