Daimler sales up
July 23, 2015
Profits at Germany's Daimler-Benz jumped 54 percent thanks to strong performance in China, the weak euro and a slew of new models in its Mercedes-Benz division.
Revealing its second-quarter results Thursday, the Stuttgart-based company earned 3.784 billion euros ($4.137 billion) before interest and taxes, up from 2.463 billion a year earlier, despite a downturn in the overall car market. Net profit in April through June rose to 2.372 billion euros, compared to 2.196 billion euros in the same quarter last year.
The company sold 714,800 passenger cars and commercial vehicles in the quarter, a gain of 14 percent over the previous year. Mercedes accounted for 500,700 of these, growing 20 percent to achieve its best sales quarter ever.
Mercedes has replaced or revamped key models and has proclaimed 2015 to be the "Year of the SUV" as it focuses on the renewed popularity of luxury sport-utility vehicles.
Daimler CEO Dieter Zetsche acknowledged the key role Mercedes had played:"We achieved our targeted margin for Mercedes-Benz cars in the first half of the year. In all other automotive divisions, we are about to achieve our margin targets. We will systematically continue along the path we have taken."
For the first time in years, the firm's core automotive business was able to meet its target of an operating margin - the percentage of profit from overall sales - over 10 percent, bringing it closer to the performance of rival German luxury car makers BMW and Audi.
Revenues increased to 37.5 billion euros, up 19 percent from 2014's 31.5 billion euros. Board member Bodo Uebber said the company expected to fulfill its forecasts for 2015.
Daimler's shares were up 2.6 percent on the news, making them one of the day's top performers on Frankfurt's DAX exchange.
In recent days, Daimler was one of three German automakers reported to be in talks with Finland's Nokia regarding sales of its Here maps unit, for about 2.5 billion euros.
sgb / hg (AP, dpa)