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Daimler Sales Up, Earnings Down
Daimler AG boosted vehicle sales and revenue in the first quarter. But accounting changes shrank operating and net profits.
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Daimler AG boosted vehicle sales 7% to 806,900 units in January-March, and revenue rose 3% to nearly €40 billion ($48 billion).
But earnings before interest and taxes fell 13% to €3.3 billion ($4 billion), and net profit shrank 11% to €2.4 billion ($2.9 billion). Daimler attributes the drop to its adoption of new accounting standards IFRS 9 and 15 related to the treatment of pending year-end vehicle transactions.
The company’s Mercedes-Benz Cars unit posted a 5% increase to 594,300 unit sales in the first quarter, led by a record 244,200 units in Europe and a 16% jump in deliveries in China. Revenue advanced 2% to €23 billion ($28 billion). EBIT grew 3% to €2.1 billion ($2.5 billion).
Daimler’s van and commercial truck operations also report increased their first-quarter unit sales, revenue and EBIT.
The company anticipates a slight increase in car sales (and a new record) this year, mainly because of growth in China. It expects a sharp jump in van and commercial truck sales.
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