Germany's Daimler posts 2.1 billion-euro profit

16th July 2010, Comments 0 comments

German automotive giant Daimler posted strong quarterly figures Friday on the back of soaring demand for its Mercedes cars and trucks, a weaker euro boosting exports and cost cutting measures.

Daimler said it made a second quarter operating profit of 2.1 billion euros (2.7 billion dollars), reversing a year-earlier loss of one billion euros.

The group also said its sales in the three months to June jumped to 25.1 billion euros from 19.6 billion euros a year earlier.

The results were especially driven by Mercedes-Benz Cars, Daimler's auto division, a statement said.

That unit posted sales of 14 billion euros and earnings before interest and taxes (EBIT) of 1.38 billion euros, owing to stronger demand, "especially in China and the United States," it said.

Other factors given were "an advantageous product mix as well as better price penetration and positive exchange effects" as the euro declined in value against other major currencies.

Daimler Trucks, the world's leading maker of heavy vehicles, turned in a stronger performance as well, benefitting from cost-reduction measures, the statement said.

Daimler shares rose 1.44 percent to 43.90 euros in afternoon trading on the Frankfurt stock exchange which was up 0.34 percent overall.

Daimler said it would raise its EBIT outlook for 2010 when it reports full second quarter results on July 27.

Earlier in the day, Daimler and Foton Motor of China signed a deal to produce heavy trucks jointly in China, a first for the German group.

© 2010 AFP

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