Daimler stands by diesel despite growing controversy
German automaker Daimler’s profits barely rose and were short of market expectations as its Mercedes-Benz luxury car division boomed while earnings lagged at its truck, van and bus businesses.
The second-quarter results were overshadowed by the growing controversy over diesel technology hanging over the automaker — and the auto industry in general — ahead of a meeting in Germany of carmakers and government officials next week.
The Stuttgart-based company reported Wednesday that net profit was up a scant 2 percent compared with a year ago, to 2.51 billion euros ($2.9 billion). Revenue increased 7 percent to 41.16 billion euros ($48 billion).
The profit was short of analyst estimates for 2.61 billion as compiled by financial information provider FactSet. On the bright side, the Mercedes division had its best quarter for unit sales ever and 2.4 billion euros ($2.8 billion) in operating profit. Mercedes division profits were boosted by strong sales of the E-Class sedan, which is equipped with extensive driver assistance technology, and of the company’s SUVs, which bring high profits per vehicle.
But operating earnings fell 13 percent in its truck business, and also lagged at the van and bus divisions.
The company reiterated that profits would “increase significantly” once again in 2017. Daimler shares traded 0.3 percent lower at 60.77 euros in Frankfurt. (AP)