Germany’s car and truck producer Daimler, the parent company of premium automaker Mercedes-Benz, announced the latter’s third-quarter profit jumped 29% – a surprise to analysts and investors.
Daimler also announced that profit was lifted by the passenger car division posting the best Mercedes-Benz third quarter sales ever, a record achieved thanks to the timely introduction of new models and a flamboyant demand for the make’s models in the world’s largest auto market, China. The earnings for carmakers operating in the United States have also been supported by the Europe’s currency depreciation against the US dollar.
Mercedes-Benz Cars, which includes Smart, has reported earnings before interest and tax (EBIT) at the unit climbed to 1.61 billion euros (1.27 billion pounds) during the quarter that ended through September. That compares to the same period last year, when EBIT revenue was of 1.25 billion euros. Daimler’s industrial free cash flow has also jumped from 2013’s 1.6 billion euros to almost 2.9 billion.
The German group also reiterated its 2014 unit forecasts, including the Daimler Trucks division, which saw core profit lifted by 17% to 618 million euros. Daimler’s shares surged following the announcement – the company will disclose all of its quarterly financial results on October 23 – reaching 58.51 euros, topping the German blue-chip DAX index.