Daimler profits double on sales of Mercedes-Benz E-class, SUVs
Mercedes Benz credits strong sales of the E-Class, which can come loaded with advanced driver-assistance features, and SUVs, which bring high per-vehicle profits.autos Updated: Apr 26, 2017 15:25 IST
German automaker Daimler AG says net profit doubled in the first three months of the year as sales were boosted by the new version of the company’s Mercedes-Benz E-class sedan and its SUV lineup.
The company raised its profit outlook for the year, with CEO Dieter Zetsche saying in a statement Wednesday that earnings and sales would “significantly increase.” The earlier prediction was for a slight increase.
Net profit rose to 2.80 billion euros ($3 billion) from 1.40 billion euros in the year-earlier quarter. Revenue rose 11% to 38.77 billion euros.
The company credits strong sales of the E-Class, which can come loaded with advanced driver-assistance features, and SUVs, which bring high per-vehicle profits. Earnings were also increased by a one-time plus of 183 million euros after new investors joined the company’s HERE mapping venture with other automakers and by currency exchange-rate shifts.
The net profit figure beat expectations for 2.4 billion euros as compiled by financial information provider FactSet.
Daimler gave a restrained outlook earlier this year as it reported setting aside more money for investment in research and development of new vehicles as it positions itself for possible changes in the auto industry, including more electric cars, car-sharing and eventually autonomous vehicles. The company is relying on strong profits from its Mercedes-Benz luxury car business to fund investment into new technology so it can adapt to shifting trends in how people buy and use cars.