Germany’s Daimler Posts Higher Profit, Sales in Second Quarter

[FRANKFURT] Daimler’s second-quarter operating profit rose 54 per cent as new luxury vehicle model launches helped the carmaker defy a slowdown in vehicle sales in China and to raise profit margins at its Mercedes-Benz Cars division.

The Mercedes me Stores are an integral element of “Best Customer Experience”, the broad-based sales and marketing strategy for the Mercedes-Benz Cars division, and are part of the Mercedes-Benz 2020 growth strategy. Mercedes accounted for 500,700 of these, growing 20 percent to achieve its best sales quarter ever. Daimler assumes that Group revenue will increase significantly in 2015.

Revealing its second-quarter results Thursday, the Stuttgart-based company earned 3.784 billion euros ($4.137 billion) before interest and taxes, up from 2.463 billion a year earlier, despite a downturn in the overall auto market.

For Daimler Buses, revenue was unchanged at 1 billion euros, while unit sales of buses and bus chassis fell to 7,300 from 8,100 units.

“We achieved the targeted margin for Mercedes-Benz Cars in the first half of the year”.

Daimler’s DAIGn.DE Mercedes-Benz is confident of a good second half of the year in China, despite problems experienced by rivals, a board member told a German online magazine.

Daimler’s shares were up 2.6 percent on the news, making them one of the day’s top performers on Frankfurt’s DAX exchange. Demand in China, the world’s biggest auto market, should grow again significantly and make by far the biggest contribution to global growth, while the United States market should also show solid development.

Daimler confirmed its outlook for the full year, saying it expects significant growth in sales, revenue and profit.

The stock gained 2.5 percent to 86.34 euros.