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Daimler Earnings Nearly Double
Daimler AG's net profit soared to €2.8 billion in the April-June period of 2013 from €1.5 billion a year earlier.
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Daimler AG's net profit soared to €2.8 billion in the April-June period of 2013 from €1.5 billion a year earlier.
Quarterly revenue jumped 30% to €29.7 billion as vehicle sales grew 6% to 605,800 units.
Earnings before interest and taxes (EBIT) climbed to €5.2 billion from €2.3 billion in the second quarter of 2012. The latest results were buoyed by €3.2 billion of proceeds from the sale of Daimler's remaining 7.4% stake in Airbus maker European Aeronautic Defense & Space Co. in April.
The company's revenue edged up 1% to €10.2 billion in western Europe despite a 4% slide to €5 billion in Germany. Sales increased 12% to €7.2 billion in the U.S. but dropped 13% to €2.8 billion in China.
EBIT at the Mercedes-Benz Cars unit tumbled 22% to €1 billion in the April-June period. Global volume rose 9% to 404,700 units. But the division's revenue advanced only 6% to €16.3 billion because lower-margin small cars accounted for more the vehicle mix.
The Daimler Trucks unit's EBIT fell 17% to €434 million. The business eked out a 1% sales gain to 123,800 units. But revenue slipped 2% to €8 billion because of unfavorable exchange rates.
Daimler predicts its profits will improve in the second half of this year because of efficiency programs, new products and stronger global demand. The company expects western Europe's car market to begin to gradually improve in the July-December period.
Even so, Daimler projects that full-year adjusted EBIT will be lower than last year's €8.1 billion, in part because of sharply lower first-quarter results. But the company forecasts higher revenue and vehicle sales in 2013.
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