Home News Daimler doubled profit in first quarter

Daimler doubled profit in first quarter

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2011-04-29_DaimlerMontage_dapd STUTTGART (Dow Jones) – With strong sales of core brand Mercedes-Benz and Daimler trucks has doubled in its first quarter profit almost. (Photo: DAPD)

The bottom line of the Stuttgart car maker went from January to March of EUR 1.2 billion, as the DAX Group announced on Friday. After the economic crisis a year ago, customers were initially reluctant to return to the car dealers.
In the first quarter of 2011, however, have increased the good sales revenue by 15% to 24.7 billion EUR. Before interest and taxes generated Daimler EUR 2.0 billion profit (EBIT) and thus 71% more than in the previous year.
The largest part of the total result contributed with EUR 1.3 billion, the car division, Mercedes-Benz Cars. In the first quarter passenger car subsidiary has sold 12% more expensive and above all new cars, particularly in China – a new record. In the current year will exceed the Swabians clearly sell more than the assembled competitors and so the projected market growth of 5% to 7%, Chief Financial Officer Bodo Uebber announced.
Even the highly profitable truck business, the Group continued grumbling after the customers have checked off the crisis in Western Europe and the USA. Almost 90,000 trucks has sold the world’s largest commercial vehicle manufacturer to the end of March, an increase of 27%. Truck sales contributed EUR 415 million to Group operating profit. 65% more orders in the first quarter also will drive sales in the coming months. Before Daimler already laid the Swedish truck-rivals Volvo and Scania surprisingly good numbers.
In the Transportation division, Daimler also benefited from an increase in sales – there was 16%. Operating profits in the division Vans tripled to 173 million EUR. Not quite as good it was in the bus division, where so far mainly chassis, but few buses were all sold. By March, the sales represented a buckled by 8% and brought the division to a loss of EUR 33 million. The Group believes, however, that the business attracts in the second half.
In the business of financial services must Daimler now less money for bad loans and allow increased its operating profit to EUR 321 million.
The earthquake in Japan left yet had little signs of slowing in Daimler’s Profit: The Japanese subsidiary Fuso had to idle capacity costs, bad debt, spending in support of suppliers, travel and security costs in the first quarter of EUR 49 million, other EUR 29 million were incurred at Daimler Financial Services . In the current quarter, chief financial officer Uebber expects additional costs of 50 to 100 million EUR.
The severe tornado in the southern United States left behind, however only minor damage to the Daimler plant in Tuscaloosa, as Uebber said. The city in the U.S. state of Alabama is one of the worst-hit areas of the hurricanes on Wednesday. From Wednesday to Thursday, the night shift employee safety had been canceled, further layers were from this week. From Monday to again produce the work schedule.
2011 the Swabians do generate more revenue with record sales and EBIT in the prior year. Although did not rule Uebber because of pending investment in new models and works of a dent, but to the return of the car business by 2013 to increase from last 8.7% to 10%. The highest margin reached the Stuttgart, with its car division in 2007 to 9.1%. In the first quarter it was 9.3%.
In terms of Tognum acquisition, CFO Uebber demonstrated by the demand of many investors for more money on Friday again unimpressed. With 24 EUR per share is the Friedrichshafen diesel engine builders attractively valued, he said. "We are not unreasonable price to pay for Tognum."