Daimler posts first quarter profit jump of 41 percent image

German carmaker Daimler, the parent company of Mercedes-Benz, the third largest premium automaker in the world, announced stellar financial results for the first three months of the year.

According to the automaker, first quarter operating profit jumped 41 percent thanks to new model introductions and the record delivery rate of its Mercedes-Benz unit. The group managed total deliveries for the three-month period of 641,600 cars and commercial vehicles, up 13 percent from the first quarter of last year. Mercedes-Benz posted record results for the time frame, with sales jumping 18 percent to 459,700 units. The group revenue reached 34.2 billion euros, surging 16 percent – while taking away the exchange-rate implications it amounted to a 9 percent increase. The earnings before interest and taxes (EBIT) rose to 2,906 million euros and net profit also surged by 89 percent to 2,050 million euros. “We made a very good start to the year 2015 and continued along our successful path with record levels of unit sales, revenue and EBIT in the first quarter,” commented Dieter Zetsche, group chairman and CEO and the chief of Mercedes-Benz Cars.

The unit, which includes both Mercedes and Smart and other smaller divisions such as Mercedes-AMG, brought the bulk of the profit’s increase, contributing to the surge with 63 percent of the earnings. The unit was supported in its profit growth by the increase in sales across al major regions. Additionally, Daimler Trucks and Mercedes-Benz Vans also managed to post increased earnings. The only division failing to do so was Daimler Buses, which had a very high earnings basis from last year.