Daimler Trucks, Vans, Contribute to Parent Company's Glowing 2Q Financials

July 27, 2011

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Daimler AG reported its second-quarter earnings were among the best quarterly results in the group's entire history, and its Trucks division saw revenue grow 14%.

Daimler Trucks increased its unit sales to 91,500 vehicles, up 9% compared to 83,800 in the second quarter 2010, and achieved revenue growth of 14% to EUR 6.6 billion ($9.5 billion).

The division posted earnings of EUR 474 million ($685.7 million), up from Q2 2010 EUR 300 million ($434 million), and a return on sales of 7.1%. The rise in earnings is primarily due to a renewed significant increase in unit sales in Europe and the United States. This was despite a negative impact on second-quarter earnings from increased material costs and high advance expenditure for the current product offensive. Earnings at Trucks Asia were reduced by decreases in unit sales and revenue, mainly caused by the natural disaster in Japan.

For the year, the company predicts Daimler Trucks will post strong growth in unit sales compared with 2010. Due to the economic upswing, the division anticipates encouraging growth rates in most of its core markets. In Western Europe, it will profit from the rapid market growth and will continue to occupy the leading position in the medium and heavy-duty segments. It is also the market leader in Classes 6 to 8 of the dynamically expanding truck market in the NAFTA region.

Unit sales by Mercedes-Benz Vans increased by 14% to 68,000 vehicles. Revenue of EUR 2.2 billion ($3.2 billion) was also significantly higher than in the prior-year quarter.

The division posted earnings of EUR 206 million ($298 million), compared to Q2 2010 of EUR 127 million ($183.7 million), and its return on sales improved to 9.2% from 6.4% in the prior-year quarter. The main factors behind this development were the ongoing market recovery and significant growth in unit sales, especially in Germany and the United States. On the other hand, the division's earnings were negatively affected by higher material costs.

Due to the ongoing market recovery, Mercedes-Benz Vans also expects to achieve growth in unit sales in its key markets in full-year 2011. In Western Europe, the division will defend its leading market position for medium-sized and large vans and will participate in the market's growth. Significant increases in unit sales are expected particularly in the United States and China - also due to the launch of the new Sprinter. Increased production capacities in Argentina will also boost growth.

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