Daimler to raise outlook after strong Q2 sales

[July 17, 2010]  BERLIN (AP) -- Daimler AG said Friday that strong sales of Mercedes-Benz cars led to a 28 percent increase in second-quarter revenue and a healthy pretax profit, which will see it raise its full-year earnings outlook.

Revenues totaled euro25.1 billion ($32.2 billion) in the March-June period, up from euro19.6 billion a year earlier, Daimler said in a brief preliminary report.

It said earnings before interest and taxes (EBIT), including special reporting items, were euro2.1 billion -- compared with a euro1 billion loss in last year's second quarter.

Daimler gave no net earnings figures. Its full quarterly report is due July 27.

In that report, Daimler "will increase its EBIT guidance for 2010," the company said in a statement. It didn't offer further details.

Daimler shares were up 1.6 percent at euro43.97 after the announcement, while Frankfurt's DAX index of blue-chip stocks was barely higher overall.

This year's second-quarter pretax earnings were powered in particular by the core Mercedes-Benz Cars unit, Daimler said.

The company already has said that unit sales at Mercedes-Benz Cars were up 10.6 percent year-on-year in June and 11.6 percent for the whole of the first half. The division has seen huge sales increases in China and healthy increases in the United States, among other markets.

The Daimler Trucks division improved its operating results in the second quarter, the company said, crediting "the positive sales development in our major markets as well as measures to sustainably reduce cost."

Daimler also cited "positive exchange effects" as a factor in the strong earnings. The euro dropped sharply against the U.S. dollar in the quarter.

Daimler said Mercedes-Benz Cars had second-quarter revenues of just over euro14 billion and pretax earnings of nearly euro1.38 billion. Daimler Trucks had revenues of some euro5.85 billion and pretax profit of euro300 million.

Earlier this week, premium-sector rival BMW AG raised its sales and earnings forecasts for 2010. It cited a recovery in global markets and strong demand for new models.

[Associated Press]

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