Daimler AG, the parent company of premium automaker Mercedes-Benz, reported profit in the third quarter that beat analyst estimates as the CLA compact coupe and upgraded E-Class sedan helped it gain ground on competitors.
The shares rose to the highest in almost six years as earnings before interest and taxes rose 16 % to 2.23 billion euros ($3.08 billion) from 1.92 billion euros a year earlier, announced the Stuttgart, Germany-based company. Profit beat the 2.09 billion-euro average estimate of 11 analysts.
“This shows that the high investments we have made were money well spent,” Chief Executive Officer Dieter Zetsche said in the statement. “We will continue to invest in products and production sites” in the years to come.
Mercedes, the world’s third-largest luxury brand, last month increased sales faster than its bigger luxury-auto competitors BMW and Audi as the addition of the CLA coupe helped compact deliveries almost double. Mercedes offers a range of 23 cars and sport-utility vehicles, up from 19 six years ago. The unit is spending to develop another 13 all-new models in the next eight years, including the GLA compact SUV due in showrooms in early 2014.
The German manufacturer’s shares gained as much as 1.51 euros, or 2.6 %, to 59.88 euros, the highest since Jan. 7, 2008, and traded 2.2 % higher as of 9:21 in Frankfurt. The stock has advanced 44 % this year, valuing the company at 63.8 billion euros.
Third-quarter revenue at Daimler, also the world’s largest maker of heavy-duty trucks, gained 5.3 % to 30.1 billion euros. The company predicted earnings in the fourth quarter will rise on higher sales and cost cutting.