Frankfurt, Germany - car manufacturer Daimler AG almost doubled its net profit in the first quarter as its luxury brand Mercedes turned in a strong sales performance in China from the booming economy.
Earnings reached euro1.18 billion ($1.7 billion), place of euro612 million in the same quarter last year, the company said Friday. Income increased by 15 per cent to euro24.7 billion.
Revenues rose through the divisions of the company, but most of the increase came from the pillar of the Mercedes brand. Unit sales of its cars and luxury SUVs in China jumped 82 percent, while Western Europe and in the United States - much larger markets Daimler - saw increases of 4 percent.
Mercedes earnings this operating past 60 per cent to euro1.288 billion in the last year, most of euro2.03 billion company to profit before interest and taxes, or EBIT. Figure omits the financial elements but is used as standard by the company and analysts.
The company has sold more than 15 percent cars and commercial vehicles last year, to 461,700.
Performance of Daimler following strong gains the last few days of other automakers, who benefit from rising demand in emerging markets like China and the India and a continued recovery in the United States. Demand is lowest in Western Europe, where is growing of the Germany, but many other countries suffering from crises of the debt, troubled finances and flat growth.
Ford Motor Co. had its best first quarter in 13 years with benefit of $ 2.6 billion, while Volkswagen gained euro1.7 billion and beat top hand the expectations of the market on strong sales in ChinaIndia, Mexico and the Argentina.
A risk factor for industry was mentioned by Daimler in the Friday report: high raw materials, the company said had a negative effect on earnings. The issue was also cited by Ford CFO Lewis Booth.
Now, a building if uneven global economy continues to stimulate the Daimler and the industry. Daimler truck Division showed a big improvement, raising revenues of euro415 million to euro130 million operating in the same quarter a year earlier. Products of the division, including the fact of U.S. Freightliner, represent important investment decisions by companies of logistics and delivery and are therefore sensitive to the ups and downs of the economy.
"We obtained excellent earnings in the first quarter," CEO Dieter Zetsche said in a statement. "This we met well in advance of our planning and confirms our positive attitude for 2011.
The company said it took charges to reflect the disruption of the earthquake of the Japan and the nuclear disaster, write to euro49 million to Daimler truck - unit Mitsubishi Fuso is based at the Japan - unique and Ungureanu million for Daimler Financial Services.
Analyst Max Warburton at Sanford c. Bernstein, said that the results "only reached, unlike beat drama this week VW" in part because of one-time charges.
Warburton said however that the performance of the truck group shows this cost reduction had lifted margins before expectations to 7.4%. "We believe that the takeoff of truck that we anticipated is now underway."
Shares of the company traded initially, then slipped 2 percent to euro52.02 in the commercial Germany morning.
No comments:
Post a Comment