Earnings surge drives carmaker’s profit higher
GERMAN carmaker Daimler posted a solid gain in second-quarter profit yesterday following a surge in earnings at its flagship Mercedes-Benz brand group and despite the emissions testing scandal that has engulfed the nation’s car industry.
The Stuttgart-based car maker said net profit climbed 2 percent to €2.51 billion (R38.05bn) in the three months to the end of June compared with €2.45bn in the same period a year earlier.
The company said second-quarter operating profit at Mercedes-Benz raced ahead by 70 percent to €2.4bn following a 9 percent rise in sales, with the luxury car group having last year overtaken BMW as the world’s leading premium carmaker in terms of sales.
The Mercedes-Benz group’s success was in part thanks to the strong demand for its new E-Class and SUV models, Daimler said.
Daimler group operating profit in the three months ended June rose by 15 percent to €3.75bn.
The company expects “significant growth in unit sales and revenue” for the full-year 2017. Second-quarter group revenue was up 7 percent at €41.2bn.
“We have set ourselves ambitious targets,” said Daimler chief executive Dieter Zetsche. “And we are achieving them, in terms of unit sales and profitability.”
Daimler shares slipped by 0.3 percent to €60.90 in late morning trading on the Frankfurt Stock Market after initially creeping up following the release of the results.