Daimler increases turnover and profits in Q3 2019
INTERNATIONAL - The total turnover of German luxury carmaker Daimler increased by 8 percent to 43.3 billion euros ($48.2 billion) in the third quarter (Q3) of 2019, the company announced on Thursday.
Earnings before interest and taxes (EBIT) also increased by 8 percent to 2.7 billion euros between July and September, the Stuttgart-based car manufacturer stated.
Back in the second quarter of 2019, Daimler had recorded an EBIT of minus 1.6 billion euros due to impacts by "exceptional items," such as the legal costs for the diesel scandal and a major recall because of faulty airbags amounting to 4.2 billion euros.
"Strong sales at Cars and Vans supported our Q3 financial performance," commented Chief Executive Officer Ola Kaellenius.
Daimler's core business, Mercedes-Benz Cars, sold a total of 604,700 vehicles in Q3 2019, marking an increase of 8 percent compared to the same period last year.
Turnover of Daimler's core brand Mercedes-Benz increased by 9 percent to 23.5 billion euros. Mercedes-Benz Vans increased vehicle sales by 10 percent to 100,300 units sold in Q3.
Turnover of Daimler's van division stood at 3.5 billion euros, 15 percent higher than in the previous year. Mercedes-Benz Trucks, Daimler's second largest business segment, however, saw vehicle sales decline by 8 percent to 125,400 trucks sold.
The turnover of the world's largest commercial truck manufacturer increased slightly to 10.3 billion euros, while its EBIT declined by 9 percent to 774 million euros.
Due to a "faster than expected economic downturn in the commercial vehicle core markets of Europe and north America in the third quarter," Daimler expected earnings of its truck business to be "adversely affected" in the fourth quarter of this year.
For 2019 as a whole, Daimler expects its vehicle sales to stagnate at "the previous year's number" of around 2.4 million vehicles sold.
Having already reduced their business guidance twice throughout the year, Daimler expects turnover to be "slightly above" the around 167 billion euros it achieved last year. Investors reacted positively after the publication of Daimler's Q3 results.
Shares of the German luxury car maker increased by over 4.5 percent and were the clear winner in Germany's benchmark stock index DAX on Thursday afternoon local time