By William Boston
BERLIN-- Daimler AG, the German automotive group, reported
higher revenue and profit in the second quarter, driven by a strong
performance of its Mercedes-Benz luxury car division.
The company's car division reported a 10.5% pretax profit
margin, the first time in years that Mercedes reported a
double-digit margin, and beat analysts' estimates. Earnings rose on
the back of new model launches and strong sales growth in China,
the U.S. and Western Europe.
"We achieved the targeted margin for Mercedes-Benz Cars in the
first half of the year. In all other automotive divisions, we are
about to achieve our margin targets. We will systematically
continue along the path we have taken," said Dieter Zetsche,
chairman of the Board of Management of Daimler.
Group revenue rose 19% in the three months to the end of June to
EUR37.5 billion ($41 billion) and net profit rose 8% to EUR2.4
billion, the company said.
Although Daimler's earnings beat forecasts, analysts had been
expecting a stellar quarter from the German luxury car maker as the
company continues to roll out new models, especially the new
C-Class sedan and stable of luxury compact cars.
Arndt Ellinghorst, an automotive analyst at research group
Evercore ISI, put out a note with the headline "Monster Trucks,
Monster Cars, Monster Quarter," saying investors needed to boost
their forecasts on the company.
Daimler shares rose on the news, climbing 1.5% to EUR85.56 in
early morning trading on the Frankfurt stock exchange.
"Both the auto and the truck business are going better than
expected," said analyst Heino Ruland of Ruland Research.
Daimler benefited from positive currency effects from the weak
euro and a cost-savings program that is expected to boost earnings
by EUR4 billion this year.
Chief Finance Officer Bodo Uebber said the company planned "to
invest in products and innovation," but declined to elaborate.
Daimler is part of a consortium of car makers that is believed to
be close to buying Nokia Here, the digital mapping business of the
Finnish telecommunications group.
"As a result of past decision we are continuing to grow
profitably and are well on the way to fulfilling our forecasts for
the 2015 business year," Mr. Uebber said.
Write to William Boston at william.boston@wsj.com
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