Daimler Earnings Jump 20%

Daimler AG sales its net income climbed to €1.4 billion ($1.9 billion) in the first quarter of 2012 from €1.2 billion ($1.6 billion) a year earlier.

The company credits the increase to stronger vehicle sales, a favorable tax rate, profit from its finance arm and income from its stake in Airbus maker European Aeronautic, Defense & Space Go.

Revenue and sales climbed 9% year on year to €27 billion ($35.8 billion) and 502,100 cars, vans and trucks, respectively. Mercedes-Benz Cars boosted sales 12% to a record 313,900 units. Daimler Truck hiked sales 20% to 107,000 units as North American demand offset declines in Europe and Latin America.

Group earnings before interest and taxes (EBIT) rose 5% to €2.1 ($2.8 billion) despite the cost of opening a plant in Hungary and introducing new small cars.

Operating income dipped 3% to €1.3 billion at the Mercedes car unit and fell 7% to €383 million at the truck unit. Operating margin at the car business slid to 8.4% from 9.3% a year earlier. The car unit aims to boost its operating margin to at least 10% next year.