Daimler rose 29-fold profit in 3Q

German auto group Daimler AG reported third quarter 2010 net income of 1.61 billion euros, almost 29 times higher than the same period last year, when he received only 56 million.

In the third quarter of 2010, Daimler AG continues strong performance in the first half. The company achieved an EBIT profit (gross) of EUR 2.418 million reported for the period (Q3 2009: euro 470 million). This growth was supported by the global auto market recovery, attractive range of products and innovations increased efficiency.

Daimler expected to continue in the same direction to achieve profitable and the fourth quarter. Dr. Dieter Zetsche, Chairman of the Board of Daimler AG and CEO of Mercedes-Benz Cars: "Of course, the world economy is not yet as stable as before the recession, but we are confident that we will continue successfully in the markets which we operate. "For 2010, the Daimler Group expects EBIT profit of current business to over 7 billion euros.

In the third quarter of 2010, EBIT increased profit by 183 million euros, after adjustment arising from health and retirement benefits in the United States subsidiary of Daimler Trucks North America. In addition, a positive verdict of a judicial process, in which Daimler was involved, brought a gain of 218 million euros. Special factors that influenced the gains of the third quarter may be analyzed in the table on page 8.

EBIT positive profit trend has led to significant improvements in net profit to EUR 1.610 million (Q3 2009: euro 56 million). Earnings per share increased also by 1.44 euros (Q3 2009: euro 0.04).

Sales rose 23% in the third quarter:

In the third quarter of 2010, Daimler sold 475,100 cars and light commercial vehicles worldwide, surpassing by 23% percent figure recorded in the previous year.

Damiler Group revenue in the third quarter of 25.1 billion was 30% higher compared to same period the previous year, adjusted for foreign exchange rate effects, revenue increased by 22 percent.

Industrial business cash flow for the period January-September increased considerably by an amount between 3.1 and 5.3 billion euros.

At the end of the third quarter of 2010, Daimler had 259,943 employees worldwide (Q3 2009: 256,857). From that total, 164,589 people are employed in Germany (Q3 2009: 163,538).

Divisions situation in the third quarter:

Mercedes-Benz Cars sales increased again in the third quarter: 17% to 317,500 vehicles. Revenue rose 33% to 13.7 billion euros.

Division reached the third quarter EBIT profit of EUR 1.299 million, indicating an increase of 944 million euros compared with the same period last year, continuing the positive trend of the first half of the year (Q3 2009: EBIT of euro 355 million). Profit from sales increased by 3.5% to 9.5%.

Also in the third quarter, revenue remarkable result primarily from the high level of sales, especially in China and the United States, and because of favorable product mix. Positive effects have resulted from the positive development of efficient prices and foreign exchange rates and warranty costs. They also felt the negative effects because of costs for advanced research.

Daimler Trucks has substantially increased sales to 94,800 vehicles compared to 66,100 in the third quarter of last year. Revenue grew 47% to 6.4 billion euros.

Division announced an EBIT profit of EUR 500 million, advancing, compared with the same period last year, with 627 million euros (Q3 2009: EBIT of minus euro 127 million). Profit from sales increased by 7.8% (Q3 2009: minus 2.9%).

The positive trend in revenues was largely the result of sales development in key markets. Improving efficiency supported, especially after repositioning subsidiary of Daimler Trucks North America and Mitsubishi Fuso Truck and Bus Corporation, also had a positive impact on EBIT profit. Another factor in the case of Daimler Trucks North America has been the gain of euro 183 million after adjustments for health and retirement benefits. There were negative effects from the tax on revaluation of long-term security and service obligations, and the rise in the cost of research and development.

Mercedes-Benz Vans sold a total of 53,700 vehicles in the third quarter (Q3 2009: 40,100). Income of 1.9 billion euros was also significantly higher compared to same period the previous year (Q3 2009: euro 1.6 billion).

The division reported an operating profit of 122 million euros (Q3 2009: EUR 1 million). Profit from sales increased by 6.4 percent compared to 0.1% last year. Improvement in revenue resulted primarily from substantial growth in sales compared with the third quarter of last year. Sustained efficiency gains latter had also a positive impact on EBIT profit.

Daimler Buses has increased sales by 9% to 9,100 buses and chassis. This increase resulted solely from the ongoing evolution of chassis sales, revenue was slightly below the previous year to 1.007 million euros (Q3 2009: euro 1,024 million).

The division achieved EBIT of euro 11 million (Q3 2009: euro 23 million) and profit from the sale was 1.1% (Q3 2009: 2.2%). The direction of earnings was dictated mainly by the unfavorable combination of models, chassis deliveries increased, while sales of buses fell.

Volume contraction of Daimler Finanacial Services Division has increased at the end of the third quarter to 61.1 billion euros, 5% higher than the level recorded at the end of 2009. New business profit increased to EUR 7.3 billion (Q3 2009: EUR 6 billion).

Division has improved its operating profit, up from 317 million euros (Q3 2009: euro 101 million). This increase was largely due to reduced costs of supplies at risk and high interest limits.

Reconciliation of EBIT EBIT Group divisions and proportional division is considering financing method for the sale of EADS shares, other gains or losses in the corporate and income effects of the removal of intra-Group transactions between divisions.

Overview:

Starting from the planning divisions, Daimler expects total sales growth and significant revenue for the year Group 2010 (2009: 1.6 million vehicles and 78.9 billion euros).

Considering the positive development of business in all divisions, Daimler Group believes EBIT result of current business for over 7 billion euros.

These expectations are based on the assumption of a stable economic growth and continuing success of the company's products on the market. The highest risks are reflected in the international financial market volatility and possible worsening of the macroeconomic environment.

EBIT expectations divisions, based on ongoing business premises in 2010, are:

Mercedes-Benz Cars expects an EBIT profit of around 4.5 billion euros.

• Daimler Trucks expects an EBIT of over EUR 1.1 billion.
• Mercedes-Benz Vans expects to achieve EBIT of around 430 million.
• Daimler Buses expects an EBIT of around 180 million euros.
• Daimler Financial Services expects an EBIT of 900 million euros.

Mercedes-Benz Cars will continue to make this year the success it has current product range, mainly because the E class models Sales will be boosted by the new super sports model Mercedes-Benz AMG and the new generation SLS class R and CL class. Since the third quarter of 2010, Mercedes-Benz cars were equipped with new engines of economic succession of six and eight-cylinder. For the smart brand is an anticipated increase in demand after the launch of the new generation smart fortwo. Based on an attractive and competitive range of vehicles, the division estimated that the number of Mercedes-Benz sales grow by double the tens unit.

Recovery of the global market will continue to have a positive impact on sales of Daimler Trucks. Are anticipated increases in sales in Europe, Indonesia, Brazil and the United States. The division expects a significant positive momentum of sales of new trucks Mercedes-Benz Axor and Atego. New Atego Atego BlueTec Hybrid and was voted Truck of the Year 2011 in the IAA Commercial Vehicles Fair in Germany. In the U.S., models the new generation of heavy-duty engines equipped with BLUETEC technology, designed to comply with EPA10, leading to increasing demand for Freightliner trucks.

Of rising demand and market recovery in business with light commercial vehicles and the launch of the new generation Vito and Viano models, Mercedes-Benz Vans expects a significant increase in sales compared with 2009.

Daimler Buses expects an increase in sales for 2010, primarily due to sales of chassis development in Latin America markets. In Western Europe, but sales remain below last year conditional on market considerations.

Daimler Financial Services for 2010 expects to reduce costs for global credit risk. In line with exchange rate effects, contract volume is expected to show stable growth in the fourth quarter.

Due to increasing demand, international work force of Daimler Group will have a slight increase compared with the end of 2009.

Source: http://www.daimler.com/

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