Daimler AG Posts Net 2Q Profit of $1.7 billion

Daimler AG Posts Net 2Q Profit of $1.7 billion

Boosted by recovering automotive markets around the world, strong growth in major car and commercial-vehicle markets and the implementation of efficiency improvements, Daimler AG posted net profit of $1.7 billion during the quarter, compared to a net loss of $1.38 billion in the year-ago period.

The company's earnings before interest and taxes was $2.7 billion, up from a loss of $1.3 billion the 2009 quarter.

“Our strategy is paying off: We have a very dynamic development of unit sales and revenue in all divisions. After what was already a very good first quarter, we achieved excellent results in the second quarter,” stated Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. Mercedes-Benz Cars and Daimler Trucks in particular posted significant improvements in their operating profit.

Zetsche remains confident for the full year: “We anticipate significant revenue growth in 2010 and we are targeting EBIT from the ongoing business of $7.8 billion.”

In the second quarter of 2010, Daimler sold 496,500 cars and commercial vehicles worldwide, surpassing the prior-year volume by 27%.

Daimler Trucks increased its unit sales by 55% to 83,800 vehicles. All of the division’s major markets contributed to this positive development, in particular Indonesia (+130%), the United States (+44%), Brazil (+50%) and Europe (+39%). Revenue of $7.7 billion was also well above the prior-year level (Q2 2009: $5.49 billion).

The key factor for the earnings trend was the good development of unit sales. There were other positive effects from the measures taken to reduce costs, in particular from the repositioning of the subsidiaries Daimler Trucks North America and Mitsubishi Fuso Truck and Bus Corporation.

Daimler Trucks expects a significant recovery of unit sales in 2010 due to the stabilizing market situation in many major markets and the availability of new models. Indonesia, the United States, Brazil and Europe will probably remain the main drivers. In addition, market recovery is also anticipated in Japan and Turkey.

The division also expects sales impetus from the face-lifted Mercedes-Benz trucks Atego and Axor, which can be ordered as of the IAA Commercial Vehicles Show with deliveries starting towards the end of this year.

The Detroit Diesel engines supplied in the United States from the new generation of heavy-duty engines with BLUETEC technology and complying with EPA10 emission regulations will lead to increasing demand for Freightliner trucks. Customer demand should also be stimulated by the new Fuso heavy-duty truck with BLUETEC engines from the new Daimler Trucks heavy-duty engine generation and by the new medium-duty Fuso Fighter.

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