Daimler AG, the parent company of the world’s third-biggest premium automaker – Mercedes-Benz – has reported rising profit for the July-September period, surpassing analysts’ forecasts.
A statement released by the Stuttgart, Germany-based maker today reports an increase in the company’s operating profit of 21% from the same quarter last year to 2.79 billion euros ($3.53 billion). The figures were about a 2.56 billion-euro average of nine analysts’ estimates released by Bloomberg. The profit that counted sales of the Mercedes-Benz Cars unit (Mercedes and Smart) was at a two-year high, as deliveries of the luxury flagship Mercedes S-Class have more than doubled.
Mercedes is also improving pricing across its lineup by adding the new GT sports car and ultra-luxury variants of the S-Class – for example the $1 million six-seat Pullman version. The affordable range of products is also constantly improved, with the latest addition of the GLA compact crossover – as Mercedes-Benz seeks to reclaim the top position lost to BMW AG.
The company kept its target to “significantly” raise operating profit (known as earnings before interest and taxes – EBIT) this year from 2013’s 7.9 billion euro figure, riding on increased vehicle sales and improved revenue margins. During the third-quarter, the latter grew from 7.3% for the same period a year ago to 8.5 % of revenue – the highest since the second quarter of 2012.