German car maker Daimler AG (DAI.XE) said Tuesday that profit almost doubled in the first quarter, lifted by sales of Mercedes-Benz cars, trucks and vans.
Net profit rose to € 1.96 billion (US$2.13 billion) from € 1.09 billion a year earlier, beating analysts’ consensus forecasts € EUR1.61 billion. Revenue increased 16% to € 34.2 billion, also helped by exchange-rate effects. The group sold 641,600 cars and commercial vehicles, 13% more than a year earlier.
The group’s sales and earnings growth is the latest evidence that Chief Executive Dieter Zetsche’s strategy of growing business through additional car models and more attractive designs is paying off.
Return on sales of the cars division, a key gauge of profitability, increased to 9.4% from 7%.
“We are on a very good path to meet our forecasts,” said Finance Chief Bodo Uebber. The group continues to expect significant growth of revenue and adjusted earnings before interest and taxes on the back of rising unit sales in 2015.
Source: Market Watch