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Although Daimler's second quarter net profit of
euro1.51 billion fell from euro1.70 billion in the same period the year before, it beat the expectation of
euro1.40 billion among analysts surveyed by FactSet. Revenue grew 10 percent to euro28.9 billion. The biggest division -- its Mercedes-Benz Cars division that makes both Mercedes and Smart brands
-- saw operating earnings fall 16 percent to euro1.31 billion despite record unit sales globally for the Mercedes brand. Unit sales for Mercedes rose 4 percent to 370,384. Daimler, based in Stuttgart, cited added expenses for launching the new A-Class and B-Class. Both cars have been top sellers but the company said it had incurred additional costs, including expanding production capacity. The company expressed optimism about the new A-class, which goes on sale in September and already has 40,000 orders. The company has reached deal to outsource production of 100,000 or more A-classes to Finland's Valmet Automotive starting next year, saying its own plants in Rastatt, Germany, and Kecskemet, Hungary, were fully booked. Handing off some production will ensure the shortest possible delivery times to customers, the company says.
[Associated
Press;
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