Earn­ings surge drives car­maker’s profit higher

The Star Early Edition - - INTERNATIONAL -

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.

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