Daimler's net profit was €1.61 billion ($2.33 billion) in the second quarter compared with €1.25 billion a year earlier, while revenue rose 5% to €26.3 billion from €25.1 billion. The company's closely watched Ebit climbed to €2.58 billion from €2.1 billion in the second quarter last year.
"We now assume that (earnings before interest and tax) will develop more positively than we previously expected and will very significantly exceed the level of 2010," Daimler Chief Executive Dieter Zetsche said Wednesday in a statement. Daimler until now had expected Ebit to rise "significantly" in 2011. It said it expects full-year revenue to come in significantly above €100 billion.
"These are strong results, but we had hoped for more due to Mercedes regional mix and truck progress. Instead, we have numbers that simply buttress expectations for full-year 2011," Sanford Bernstein analyst Max Warburton said in a note
Daimler stock has lost about 2% in value over the past six months, underperforming a 31% rise at rival BMW AG. Analysts are citing a less focused product portfolio, a smaller exposure to the booming Chinese market and communication issues as reasons for the lag in Daimler's shares.
Daimler's core Mercedes-Benz Cars division, which comprises the Mercedes-Benz, Smart and Maybach brands, contributed €1.57 billion to second-quarter Ebit, up from €1.38 billion last year. Demand for the division's namesake brand was fueled by surging interest in premium cars particularly in China, where a growing number of affluent customers opts for the company's large flagship models.
Daimler said in addition to higher sales volume, a good product mix, better pricing and lower warranty expenditures helped earnings and more than offset headwinds from higher prices of raw materials, costs related to the launch of new vehicles and unfavorable currency effects.
"Mercedes is overshadowed by BMW, but in isolation 10.7% (profit) margins are an all-time record," Mr. Warburton said.
Mr. Zetsche told reporters that Daimler would make a decision on the future of its ultra-luxury Maybach brand in the course of this year. Maybach sales fell short of expectations in recent years despite rising demand in this segment. The brand, however, accounts only for a tiny portion of Daimler's car sales.
Daimler's truck unit, the world's largest commercial vehicle maker by revenue, posted €474 million in second-quarter Ebit compared with €300 million last year amid a broad industry recovery from a dramatic market slump in 2009. Sales increased 9% to 91,500 trucks in the second quarter. The company said truck sales in 2011 will rise substantially year-to-year as economic growth in most of its markets is driving demand for transportation.













































