Mercedes-Benz swells Daimler profit

Daimler has reported another improved quarter, as the Mercedez-Benz maker sees profit up 53 per cent, unit sales increase 13 per cent to 595,000 vehicles and revenue at €30.1bn in the third quarter. Shares jumped on the results this morning. (Release)

Net profit for the period was €1,897m (£1615.17m) (€1,238m (£1054.08m) like-for-like). Chairman Dr Dieter Zetsche said that the improved earnings show that the company's high investments "were money well spent."

Mercedes-Benz sales grew by a record 15.9 per cent, to 142,994 cars, in September. Total sales in the car division grew by 14 per cent to 395,400 units in the third quarter, with revenue up eight per cent at €16.5bn.

Marked growth in China, the US has been added to by the expanded range of compact cars.

Despite weak demand and intense competition in Europe, Mercedes vans saw unit sales up 17 per cent to 65,300 vehicles, bringing in €152m - 103 per cent increase on the like-for-like €75m.

Daimler Financial Services finished around 296,000 new leasing and sales-financing contracts - a €10.4bn volume, generating four per cent more new business than in the third quarter of last year. Contract volume reached €82.0bn at the end of September (two per cent higher like-for-like).

The company says worldwide demand for cars seems likely to expand by around three per cent this year, driven by strong growth in China and the US, but low-level demand (albeit stable) and a difficult economic environment in Western Europe means that an overall decrease is expected for the region. Japan will also see contraction, after unusually high state incentives in past years.

Finance board member Bodo Uebber said “We are continuing with the effective implementation of our growth offensives and efficiency programs. That is having an increasingly positive impact on our earnings and gives us a good starting position for the year 2014. We are also continuing to work with a clear focus on achieving our targets and we anticipate further earnings improvements in the future.”

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