Daimler Welcomes Third Quarter Profit

While German vehicle manufacturer Daimler AG saw a welcome improvement in its earnings and net profit in the third quarter versus the second quarter, the numbers were still down from the year-ago period

. This marks the first quarterly profit for the manufacturer this year.

Daimler raked in a net profit of $82.6 million in the third quarter, compared to a net loss of $1.57 billion in the second quarter. However, the third quarter profit was down from $314 million during the third quarter of 2008.

The company's earnings before interest and taxes was about $693.8 million during the third quarter, versus the second quarter's $1.5 billion loss. In the third quarter of 2008, the company earned about $956.6 million.

Revenue was down to $28.5 billion during the quarter from $36 billion in the year-ago quarter. The company sold 386,500 vehicles during the quarter, down 26 percent from the year-ago period.

"The development of earnings in the third quarter reflects on the one hand declining unit sales in all vehicle segments," the company said in a statement. "On the other hand, the full availability of the E-Class and the measures taken to improve efficiency had a positive impact on third-quarter earnings."

Daimler Trucks sold 66,100 units, down from 122,700 in the third quarter of 2008, due to a slump in demand for transport services, the company says. Revenue dropped to $6.5 billion from $10.8 billion in 2008.

Although trucks sales have increased over the last few months, the company still expects overall sales for 2009 to decrease because of lower demand and overcapacity.

"The division assumes that its market shares will at least remain stable in the major markets, although its regional mix will change," the company said. "Whereas unit sales will rise in Asia, the European markets' share of total unit sales will decrease."

Daimler is the parent company of Daimler Trucks North America, which makes Freightliner Trucks.