Daimler's profit soars

The first quarter of 2014 has seen Daimler AG's net profit nearly double, with Daimler trucks, buses and vans all playing their part

Daimler AG – the entire Daimler group which encompasses both cars and commercial vehicles – has reported a stunning start to 2014, with the first quarter of the year seeing net profit almost double compared to the corresponding period for last year, and record sales of 565,800 vehicles.

The group recorded a net profit of Euro 1.1 billion ($A1.6 billion) in the first three months of this year, up from Euro 564 million ($A842 million) for the period last year, while overall revenue was up by 13 per cent to Euro 29.5 billion ($A44.1 billion).

While it was Daimler’s car division leading the charge, Daimler Trucks also achieved favourable results, its sales of 108,500 vehicles representing an increase of seven per cent over the prior-year level. Sales strengthened in North America and Asia in particular, offsetting poorer results in Latin America.

Daimler Trucks recorded EBIT (earnings before interest and taxes) of Euro 341 million ($A509 million), up from Euro 116 million ($A173 million) in 2013, while the divisions return on sales was 4.8 per cent, compared to 1.7 per cent for the first quarter of 2013.

Daimler Buses sold 6700 vehicles in the first quarter of 2014 versus 6000 for the corresponding period last year, while its revenue rose by 14 per cent to Euro 859 million ($A1.3 billion). Its return on sales grew from 4.1 per cent to 6.2 per cent.

Mercedes-Benz Vans experienced a significant surge, its first quarter sales rising by 16 per cent to 61,100 units and its revenue growing by 11 per cent to Euro 2.2 billion ($A3.3 billion). Its return on sales also rose – to 5.6 per cent, up from 4.1 per cent in Q1 2013.

The Chairman of the Board of Management of Daimler AG and the head of Mercedes-Benz Cars, Dr Dieter Zetsche, said the group’s policies were achieving their aims.

“Our strategy is paying off; our investments are bearing fruit,” he said.

“We made a good start to this year, as expected. As the year progresses, we will continue working systematically on our profitable growth path.”

Daimler's profit soars

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