Daimler AG (DAI): Net Profit Increases 53% For Q3
Daimler AG (ETR:DAI) net profit has increased 53% for Q3 due to strong performance from the Mercedes-Benz luxury brand. Net income rose to 1.90 billion euros ($2.6 billion) from 1.24 billion euros in the same period one year ago. Daimler’s revenue rose 5% to 30.1 billion euros. Daimler’s sales for the smaller A-Class, B-Class, and CLA models jumped by 90% in the quarter to 97,200.
Mercedes saw vehicle sales increase 14% to a record 395,000 for the quarter. Operating earnings increased 23% to 1.20 billion euros as a result. Daimler especially saw demand in China increase since Mercedes sold 38% more vehicles there in the quarter. Daimler’s factories were using most of their capacity and they will be adding special production shifts for the rest of the year.
“Our earnings continued improving in the third quarter, compared with the year to date and compared with the prior-year period. This shows that the high investments we have made were money well spent. We will continue to invest in products and production sites in order to secure the Group’s sustainable medium and long-term success,” stated Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars.
Daimler’s operating earnings will rise this coming quarter compared to a year ago since sales and profits are going to benefit from the new version of the S-Class luxury sedan. The S-Class has higher profit margins than the smaller vehicles.
Daimler is recovering from lower earnings earlier this year because of problems that they had with their distribution network in China.
Daimler’s shares are up 3.41% at a price of $60.36 when this was published.