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Daimler Profit Falls 11%
Daimler AG posted €1.5 billion ($1.8 billion) of net income for April-June 2012 compared with €1.7 billion ($2.1 billion) in the same quarter last year.
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Daimler AG posted €1.5 billion ($1.8 billion) of net income for April-June 2012 compared with €1.7 billion ($2.1 billion) in the same quarter 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 ($35 billion). Sales of cars, trucks, vans and buses rose 8% to 570,300 units. Earnings before interest and taxes fell 13% year over year to €2.2 billion ($2.7 billion). EBIT margin dropped two points to 7.8%.
The Mercedes-Benz Cars unit boosted April-June revenue 5% to €15.4 billion ($18.6 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 ($1.6 billion), and return on sales slumped to 8.6% from 10.2% a year earlier.
Revenue from Daimler's truck unit jumped 22% to €8.1 billion ($9.8 billion) as sales surged 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 ($634 million).
Daimler confirms its earlier full-year forecast that companywide EBIT from continuing operations will match last year's €8.8 billion ($10.6 billion).
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