Daimler’s Second Quarter Profit Up Thanks to EADS Stake Sale image

Daimler reported profit before minorities up to 4.58 billion euro during the second quarter, thanks to the sale of its stake in EADS.

In March the German automaker said that net profit after minorities in the second quarter would increase 1.34 million euro, which would be 1.25 euro per share, after the reevaluation of its EADS 7.5% stake. Industrial free cash flow reached 3.5 billion euro during the quarter, thanks to the sale of this stake.

At the end of June, Daimler’s net cash increased to 11.3 billion euro, from 10 billion at the end of the previous month. The automaker’s preliminary quarterly results reported earlier this month, surpassed analysts estimates and also reaffirmed the company’s prediction for lower ongoing business operating profit, increasing the stock to a 2-year high.

Daimler’s Mercedes has been struggling to match German rivals BMW and Audi for efficiency and scale in smaller vehicles or to at least equal their success in the Chinese market. Mercedes plans to reaching savings of 2 billion euro by the end of 2014.

“The implication clearly is that Daimler is bouncing back” from the first quarter, said Frankfurt-based Bankhaus Metzler analyst Juergen Pieper. “Cost savings and forthcoming model releases should underpin a second-half uptrend.”

Source: Reuters