Daimler Q1 profits beat expectations as Mercedes car sales continue to surge
12 April 2017
12 April 2017
In a surprise preliminary release in advance of the full Q1 2017 results being published on 26 April, Daimler reported on Tuesday that its earnings before interest and taxes (EBIT) almost doubled from €2.1 billion in Q1 2016 to €4.0 billion in Q1 2017. The gains are largely attributed to an ongoing surge in demand for Mercedes cars, which only regained the premium car brand sales crown from BMW in 2016.
Earnings were further boosted by Daimler’s investment in Chinese OEM BAIC, a revaluation of the company’s stake in mapping specialist HERE and a one-off gain from the sale of MFTBC (Mitsubishi Fuso Truck and Bus Corporation) real estate.
The core Mercedes-Benz Cars division sold 16% more cars in Q1 2017 than in the first quarter of 2016, which resulted in the unit’s profits rising 60% to €2.24 billion euros. The brand has been revitalised by the release of new versions of its core C-Class and E-Class models as well as the expansion of its SUV line-up with models such as the GLC coupe. A refreshed Mercedes S-Class is also due to be unveiled at the Shanghai Motor Show next week.
Daimler‘s profits were ′significantly better than market expectations‘ and this will especially delight CEO Dieter Zetsche as he embarks on an electric vehicle (EV) offensive, having only announced late in March at the annual shareholders meeting that the company has brought forward its EV plans by three years.
Photograph courtesy of Daimler