This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Daimler Net Soars on Mercedes Sales

FRANKFURT -- Automaker Daimler (DDAIF) nearly doubled net profit in the first quarter as its luxury Mercedes brand kept up its strong sales performance in China.

Earnings reached €1.18 billion ($1.7 billion), up from €612 million in the same quarter last year. Revenue rose 15% to €24.7 billion.

Earnings were up across the company's divisions, but most of the increase came from the mainstay Mercedes brand. Unit sales of its luxury cars and SUVs in China jumped by 82%, while Western Europe and the United States -- still far bigger markets for Daimler -- saw 4% increases.

Mercedes operating earnings rose 60% to €1.288 billion from a year ago, the bulk of the company's €2.03 billion in earnings before interest and taxes.

The company sold 15% more cars and commercial vehicles than last year, at 461,700.

Daimler's performance follows strong earnings in recent days from other automakers, who are benefiting from rising demand in emerging markets such as China and India, and from a continuing recovery in the United States. Demand is weaker in Western Europe, where Germany is booming but several other countries are suffering from debt crises, troubled government finances and flat growth.

Ford (F) had its best first quarter in 13 years with $2.6 billion profit, while Volkswagen earned €1.7 billion on stronger sales in China, India, Mexico and Argentina.

One risk factor for the industry was mentioned by Daimler in Friday's report: rising costs of raw materials, which the company said had had a negative effect on earnings. The issue was also cited by Ford Chief Financial Officer Lewis Booth.

For now, a strengthening if uneven global economy continues to boost Daimler and the industry. Mercedes truck division -- whose products represent big-ticket investment decisions by logistics and delivery companies and are therefore sensitive to the ups and downs of the economy -- showed a big improvement, raising operating earnings to €415 million from €130 million in the same quarter a year earlier.

"We achieved excellent earnings in the first quarter," CEO Dieter Zetsche said in a statement. "This puts us well ahead of our planning and confirms our positive outlook for 2011."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
AAPL $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%
TSLA $280.02 0.00%
YHOO $39.38 0.00%


DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs