Daimler Earnings Drop 11%

Daimler AG posted a €1.5 billion net profit for the April-June quarter of 2012 compared with €1.7 billion in the same period of last year. The company attributes the decline to a less favorable model mix and higher expenses for new vehicles and technologies.

Group revenue climbed 10% to €28.9 billion. Sales of cars, trucks, vans and buses rose 8% to 570,300 units.

Daimler took a €46 million charge in the second quarter for realigning its European and U.S. bus operations. Group earnings before interest and taxes fell 13% year over year to €2.2 billion. EBIT margin dropped two points to 7.8%.

The Mercedes-Benz Cars unit boosted April-June revenue 5% to €15.4 billion. Sales grew 4% to a second-quarter record of 370,400 vehicles, thanks to strong demand in Asia and the U.S. EBIT shrank 16% to €1.3 billion, and return on sales slumped to 8.6% from 10.2% a year earlier.

Revenue jumped 22% to €8.1 billion at Daimler's truck business, which hiked sales 34% to 122,200 units. Truck volume grew in Asia and North America but sagged in Brazil. The unit's EBIT increased 8% to €524 million but its EBIT margin narrowed 0.9 points to 6.4%.

Van revenue rose to by €200 million to €2.4 billion, and sales grew 2% to 69,300 vehicles. EBIT dipped 4% to €197 million.

The company boosted group employment 3% year over year to 273,200 people, but its workforce in Germany was little changed at 166,500 employees.

Daimler confirms its earlier full-year forecast that EBIT from continuing operations will match last year's €8.8 billion.