Daimler sees fourth quarter profit up 10 percent image

Daimler, AG, the parent company of Mercedes-Benz – the third biggest luxury automaker in the world – has announced its fourth-quarter operating profit soared 10 percent.

The positive financial result comes from new product launches that have driven up demand and sales, while earnings margins at the Mercedes-Benz division also improved. According to a statement from the German automaker, operating profit, known as earnings before interest and taxes from ongoing business rose from 2.56 billion euros during the same period of 2013 to 2.82 billion euros ($3.2 billion) in Q4 of 2014. Mercedes-Benz Cars, which includes the namesake brand and the Smart minicar unit, posted a fourth-quarter operating margin of 8.3 percent – rising from 7.5 percent in the same period last year. For the whole of 2014, the same figure again climbed from 6.2 percent in 2013 to 8 percent – though Daimler is still not satisfied and wants it to further rise to 10 percent. “This progress is the result of consistent hard work. Daimler is on an upward curve,” commented CEO Dieter Zetsche about the decision planned years ago.

Group sales increased 11 percent to 35.7 billion euros and the company has now forecasted that operating profit, or earnings before interest and taxes from ongoing business, for the current year could climb at least another 10 percent. Mercedes sales jumped 13 percent to 1.65 million units in 2014, faster than rivals at BMW and Audi. The company remained the third largest premium manufacturer on the globe though, with Audi being ahead by 91,090 vehicles and BMW another 161,709 autos.

Via Automotive News Europe