China, international restoration enhance revenue at automaker Daimler – KIRO 7 Information Seattle

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FRANKFURT, Germany – (AP) – German car and truck maker Daimler AG announced that net profit rose sharply in the first three months of the year to 4.4 billion euros (5.3 billion US dollars), as the global economy recovered and demanded for the company’s luxury offerings, vehicles in China have fattened the bottom line.

The company on Friday raised its outlook for an important measure of profitability this year and now expects a 10 to 12% profit on sales of its Mercedes-Benz vehicles, compared to an outlook of 8 to 10% last year’s estimate . Strong profits on conventional vehicles are key to funding the huge investments in new technologies like electric cars and digital services that are shaking up the auto industry.

CFO Harald Wilhelm said: “After this promising start, we are very confident that we can keep up the pace in order to improve our margins sustainably and at the same time expand our range of electric vehicles.” more profitable vehicles, and would be increased by a favorable pricing power. He cited tailwind for the company’s business in China, a major source of revenue for Mercedes.

The company is accelerating the introduction of new electric vehicles. On April 15, he showed the EQS, the battery-powered equivalent of his large S-Class sedan.

Earnings in the first quarter up from € 168 million in the first quarter of 2020 when the company closed factories and switched to cash preservation mode in the first phase of the coronavirus pandemic.

Daimler AG sales rose by 10% to 41.0 billion euros, while sales in the Mercedes-Benz passenger car business rose by 15% to 538,869. Daimler’s truck business, which is to be spun off this year, recorded a 1% drop in sales to EUR 8.66 billion, but doubled its adjusted operating profit from EUR 247 million in the same period of the previous year to EUR 518 million. The division’s brands include Freightliner and Western Star Trucks.

After the announcement of 74.04 euros in morning trading in Europe, Daimler shares rose 0.35%.