Daimler Upbeat About Second-Quarter Results

CEO Dieter Zetsche says Daimler AG's earnings have improved in the current quarter because of the success of new models and faster-than-expected cost reductions at its Mercedes-Benz Cars unit.

Mercedes aims to slash costs by €2 billion ($2.7 billion) by the end of 2014, one-third of which is expected this year.

The brand's global sales climbed 7% to 121,400 vehicles in May, including a 5% increase to 57,800 units in Europe. Worldwide volume was buoyed by strong sales of A- and B-Class small cars, M-Class crossover vehicles and the new CLA compact coupe.

Zetsche also is optimistic about second-half results. He notes that Mercedes received 12,000 advance orders in the past month for the latest generation of the Mercedes S-Class, which went into production this week. The flagship car goes on sale in Germany on July 20.

Zetsche also predicts that Europe's moribund car market will improve in the second half of 2013.