Truck Sales Help Daimler Post Profit for First Quarter

Boosted by booming sales for Daimler Trucks and Mercedes-Benz cars, Daimler reported positive numbers for 1Q 2012 despite higher spending.

Daimler's first-quarter revenue increased by 9% to $35.8 billion. Adjusted for exchange-rate effects, revenue grew by 7%.

Daimler AG reported an EBIT of $2.8 billion in the first quarter of 2012, an increase of 4.9% from last year's first quarter. Net profit increased by 20% to euro $1.8, and earnings per share rose to $1.65 from $1.31 in the first quarter of 2011.

The positive numbers are a reflection of the ongoing growth of unit sales at Mercedes-Benz Cars and Daimler Trucks.

In the first quarter of 2012, the Daimler Group sold a total of 502,100 cars and commercial vehicles worldwide, surpassing the prior-year number by 9%.

The Daimler Trucks division, which includes the Mercedes-Benz, Freightliner, Western Star and Fuso brands, posted a 21% jump in sales in the quarter, to 107,700 vehicles. Demand in North America and Asia more than made up for declines in Europe and Latin America.

There were opposing, negative effects on earnings mainly in connection with the expansion of the product portfolio, including the current product offensive at Daimler Trucks. Exchange-rate movements had a positive effect on earnings.

The decision to reposition the European business of Daimler Buses resulted in charges of $47.7 million.