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Mercedes sales boost Daimler's profit

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Mercedes sales boost Daimler's profit

Christine Tierney / The Detroit News

Germany's Daimler AG raised its profit forecast for the year on Tuesday after reporting a big recovery in second-quarter earnings led by its luxury Mercedes-Benz Cars business.

Daimler reported net profit of $1.7 billion, in the April-June quarter, compared with a year-earlier loss of $1.4 billion.

The Stuttgart-based automaker confirmed that earnings before interest and taxes -- a widely watched gauge of its profitability -- totaled $2.7 billion, compared with a year-earlier loss of $1.4 billion. Daimler announced pre-tax earnings July 16 to alert analysts that the consensus earnings expectations were low.

CEO Dieter Zetsche increased his pre-tax earnings forecast for the year to $7.8 billion. The company previously predicted 2010 pre-tax earnings would exceed $5.2 billion.

Daimler's bullish forecast underscores the robust recovery in the luxury auto sector, which was hit hard in last year's industry downturn. BMW AG also has increased its annual earnings and sales forecast.

Zetsche said strong demand for luxury cars in China as well as recovering sales in other regions contributed to the dramatic recovery in earnings.

Daimler's financial results also benefited from rising sales of Mercedes' most lucrative models. "The highest increases are with S-Classes, E-Classes and SUVs," Zetsche told analysts and reporters on a conference call.

Mercedes was the big money-maker, contributing $1.8 billion of pre-tax earnings on a 27 percent rise in sales. But Daimler's truck and van businesses also returned to profit in the second quarter, and the bus business increased its quarterly earnings.

The improvement in the truck business reflected the global economic recovery, said Craig Hutson, a bond analyst at research firm Gimme Credit.

Truck sales were up 55 percent, while Mercedes van sales rose 42 percent. Daimler's second-quarter sales totaled 496,500 cars and trucks, up 27 percent from last year. Revenue rose 28 percent to $32.7 billion.

From The Detroit News: http://www.detnews.com/article/20100728/AUTO01/7280330/1148/Mercedes-sales-boost-Daimler-s-profit#ixzz0uypPKN36

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Mercedes helps drive Daimler to Q2 profits

By Mark Kleis

Daimler Group has reported its Q2 financial results, posting a $1.7 billion net profit – a vast improvement compared to the $1.4 billion loss for the same quarter in 2009.

German auto group Daimler is enthusiastically reporting a very strong quarter, thanks largely to the turnaround by the luxury segment in most markets around the world. Daimler says overall revenue has grown significantly from $25.5 billion in Q2 2009 to $32.6 billion in 2010.

Dr. Dieter Zetsche, chairman of the board of management of Daimler AG and chief of Mercedes-Benz Cars said, “We anticipate significant revenue growth in 2010 and we are targeting EBIT from the ongoing business of $7.8 billion.”

Daimler sales up 27 percent

Daimler AG enjoyed a healthy 27 percent bump in sales, accounting for 496,500 vehicles sold.

Daimler’s subsidiary, Mercedes-Benz Cars, moved 19 percent more vehicles than in the same period last year, totaling 342,500 vehicles sold. For Mercedes-Benz, sales were up 24 percent to 314,400 vehicles sold in Q2 2010. Zetsche says this was the second largest quarter in Mercedes’ history.

Daimler trucks jumped a massive 55 percent to 83,800 vehicles sold. Indonesia showed the largest gain as a single market, jumping a substantial 130 percent, followed by Brazil with a 50 percent increase, the U.S. with a 44 percent bump and Europe up 39 percent overall.

LINK:

http://www.leftlanenews.com/mercedes-helps-drive-daimler-to-q2-profits.html

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