Mercedes cars boost Daimler profits

Car maker Daimler reported another strong quarter today as four of its five divisions recorded higher earnings and the luxury Mercedes brand posted record profits.

Overall net profit was up a higher-than-expected 30% at €1.7bn from €1.3bn a year ago, while revenues rose 5% to €26.3bn.

Mercedes did particularly well, posting its strongest quarter ever with operating earnings rising 14% to €1.56bn.

The company said 2011 would turn out better than expected and operating earnings would “very significantly exceed” last year’s results. Earnings of €1.51 a share in the second quarter outstripped expectations of €1.43.

Stuttgart-headquartered Daimler and German competitors BMW and Volkswagen have turned in strong earnings in recent quarters thanks to rapidly rising demand in emerging markets such as China, along with the recovery in sales in the United States.

“With our excellent first half of the year, we are fully on schedule to turn 2011 into one of the most successful years in our long corporate history,” said chief executive Dieter Zetsche, who also heads the Mercedes division.

As well as a strong performance in the Mercedes Benz Cars division, earnings were also up at the company’s separate truck, Mercedes van, and financial services divisions. Only its bus-making operation showed lower profits, but still made €61m.

Mr Zetsche said the company could do still better. “We’re not in the highest gear. We can do more.”

The company is preparing a new version of its smaller Mercedes B-Class car for the Frankfurt motor show in September.