Daimler Doubles First-Quarter Net Profit

Daimler AG reports its first-quarter revenue climbed 11% to €38.8 billion ($42.3 billion) as units sales grew 10% to 754,300 vehicles. Net profit doubled to €2.8 billion ($3.1 billion).

The group’s quarterly earnings before interest and taxes zoomed to €4 billion ($4.4 billion) from €2.1 billion in the same period last year.

Results were driven by strong demand for the company’s Mercedes-Benz cars and SUVs. Mercedes sales expanded 14% to a record 568,100 units in January-March. EBIT for the unit surged 60% to €2.2 billion ($2.4 billion).

First-quarter results also were aided by Mercedes-Benz Vans, which hiked unit sales 13% to a record 86,800 vehicles. Revenue grew 6% to €3 billion ($3.3 billion), and EBIT advanced 19% to €357 million ($389 million).

Daimler Trucks posted an 11% drop to 94,000 sales of commercial vehicles in the first quarter. Revenue fell to €7.9 billion ($8.6 billion) from €8.2 billion in the same period last year. But EBIT rose 29% to €668 million ($727 million) because of a real estate sale involving Daimler’s Mitsubishi Fuso Truck and Bus affiliate.

Daimler predicts a “significant” jump in unit sales and group revenue for the full year, led by Mercedes cars and Daimler Financial Services.