Daimler Profit Rises on Higher Sales Volumes image

German car and truck maker Daimler Thursday reported a rise in net profit as demand for its premium brand Mercedes-Benz continued to surge. The company reported a 29 percent rise in net profits to 6.029bn euros ($8bn; £5bn).

The Group achieved its best-ever results in 2011 for unit sales, revenue, EBIT and net profit.
Daimler sold a total of 2.1 million vehicles in 2011, surpassing the prior-year figure by 11%.
All of the automotive divisions contributed to the increase. Group revenue increased by 9% to €106.5 billion; adjusted for exchange-rate effects, there was an increase of 10%.

The net liquidity of the industrial business amounted to €12.0 billion at December 31, 2011 (2010: €11.9 billion).

However, the maker of the S Class sedan issued a cautious outlook Thursday, saying next year’s profits would only equal this year’s and that the debt crisis afflicting the 17-nation Eurozone would mean a flat market in Western Europe.

Mercedes will spend about 2 billion euros to expand production in Asia – China and is investing an additional $2.4 billion in its U.S. plant. The carmaker will also open a new 800 million-euro factory in Hungary this year in a bid to reclaim the top spot in luxury vehicles that it lost in 2005.

Daimler’s shares rose 5% to 46.84 euros in morning trading in Germany.

Table: Earnings in both years were affected by special factors, which are listed in the following table:
In millions of euros
2011
2010
Daimler Trucks
Impairment of investment in Kamaz

Natural disaster in Japan

Adjustment of health-care and pension benefit plans

Repositioning of Daimler Trucks North America

Repositioning of Mitsubishi Fuso Truck and Bus Corporation

-32

-70

-

-

160

-37

-3

Daimler Financial Services
Natural disaster in Japan

Repositioning of business activities in Germany

Sale of non-automotive assets

-10

-

-

-


-82

-9

Reconciliation
Impairment of investment in Renault

Gain on the sale of shares in Tata Motors

Income connected with the settlement of a legal dispute

Anniversary bonus and allocation to Foundation

-110

-

-

265

218

-213

The figures in this document are preliminary and have not yet been approved by the Supervisory Board nor audited by the external auditors.