German automaker Daimler AG has reported 3d quarter
earnings with a sharp increase due to the strong demand for
its flagship Mercedes S class sedans and robust growth in Europe , Asia
and the US .
Daimler said net profit rose 49% to €2.74 billion , in the quarter ended on
the 30th of September . Revenue increased 10% to
€33.12 billion . Including noncontrolling interests , net profit totalled
€2.82 billion .
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" Our strategy is paying off . We are growing profitably and look to the
future with optimism also beyond the full year , " said chairman Dieter Zetsche
.
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The three German premium car makers ( Volkswagen who owns rival Audi , BMW
and Mercedes ) are in a tight race for the top spot . BMW is still ahead with
1.32 million cars sold in the first 9 months of the year . Audi is a close
second at just under 1.3 million . Mercedes trails behind with 1.26 million
sales , not including its Smart compact , but is growing at a faster pace to
its rivals .
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Earnings in the quarter largely met expectations and got a boost from a
windfall gain of €1 billion from the sale of Daimler's 50% stake in the joint
venture Rolls-Royce Power Systems Holding
GmbH , better pricing for Mercedes-Benz cars , cost-cutting and less
exchange-rate volatility .
Daimler also sold recently its 4% stake in electric car maker Tesla , for a
gain of 780 million dollars .
The two above actions were welcomed by several analysts ,
believing " Cash is king in times of rising uncertainty . "
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As the year progresses , the Stuttgart based company , expects
the negative impact from currencies to ease further .
Mercedes-Benz , reported its strongest EVER quarter in terms of sales . It
sold 431.000 cars in the quarter , an increase of 9% from a year earlier , with
sales growth 18% in Europe and China ,
and a 5% in the US . Sales in Germany though declined by 5 % .
Daimler said , its earnings growth was driven by strong sales of
its S-class sedans . It sold 28.200 S-class worldwide in the first nine
months of the year . " three times as many as in the same period last year
."
It also made significant progress in cutting costs by €2 billion .
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Daimler trucks reported higher sales and earnings in the quarter,
boosted by a 25% increase in sales in North America .
But the world's largest truck maker by sales continues to struggle with
declining revenue in Latin America , where sales fell 23% ,and Asia , where they
dropped 6% as a result of a sharp decline in demand in Indonesia .
In Western Europe , sales fell from a year earlier , reflecting a
one time boost in 2013 as customers pulled forward purchases
in response to new EU emissions regulations .
Overall , truck sales rose 6% to €8.5 billion .
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FINALLY ,Daimler financial services ,the company's 3d largest profit maker
, reported a 10% gain in earnings from new businesses with car loans , leasing
and insurance policies .
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