Daimler’s Third-Quarter Sales Up, Profits Down

Daimler AG reports its revenue in July-September grew 6% to €40.8 billion ($48.4 billion) as car sales climbed 9% to 824,100 units.

But pretax earnings dropped 13% to €3.5 billion ($3 billion), and net profit dropped 15% to €2.3 billion ($2.7 billion).

The company says its third-quarter EBIT was dragged down by €453 million ($537 million) in combined costs related to replacing Takata airbag inflators and updating the emission systems of diesel-powered models.

Daimler’s Mercedes-Benz Cars unit hiked third-quarter sales 6% to a record 597,300 cars and crossover vehicles, led by a 21% jump in China. Sales in the U.S. fell 9%. The division’s revenue advanced 1% to €23.4 billion ($27.7 billion). But recall actions cut EBIT 22% to €2.1 billion ($2.5 billion).

Mercedes-Benz Vans sold a record 93,100 trucks, up 9%, in the period. The biggest sales gains were in the U.K., Austria, Poland. Revenue was flat at €3.1 billion ($3.7 billion).

The company hiked third-quarter spending on r&d to €2.3 billion ($2.7 billion) compared with €1.9 billion in the same period last year. About 75% of the total went to Mercedes-Benz for programs involving powertrain electrification, vehicle connectivity and autonomous driving systems.