Daimler failed to keep pace with Bmw in the second quarter

Article by Christian Andrei, on July 26, 2011

Daimler AG was not able to keep up with rivals in the second quarter of this year, recording truck profits that trailed Volvo AB and forecasting slower sales growth than BMW AG. Specifically, the company increased its 2011 sales target by 50,000 units, which is lower than the BMW's growth of 100,000 cars.

The company’s profit margins for trucks unit lagged behind Volvo by 3.1 percentage points. Volvo is the second largest truck manufacturer in the world next to Daimler.

Currently, Daimler is constructing a plant in Hungary and expanding facilities in the U.S. and in China after it was beaten by Audi as the second biggest manufacturer of premium vehicles this year.

Moreover, Mercedes has struggled to manufacture enough cars to be at par with the growth of Audi and BMW. According to CEO Dieter Zetsche, a higher capacity would have boosted the sales of Mercedes. Analyst Arndt Ellinghorst at London-based Credit Suisse shared that as of the moment, the “delta to Daimler's peers is widening,” which is the reason why the stock is underperforming.

He said that the company has to make sure that the trend changes. This month, BMW increased its 2011 sales forecast from 1.5 million to 1.6 million vehicles, exceeding the 2015 target of Mercedes. On Wednesday, Daimler stated that deliveries will probably be beyond 1.35 million, versus an earlier forecast of 1.3 million.

Operating margin for Daimler trucks in the second quarter was 7.1 percent versus the 10.2 percent of Volvo. In addition, Daimler's earnings before interest and taxes for the second quarter increased 23 percent to 2.58 billion euros, while net income increased 30 percent to a record 1.7 billion euros as sales leaped 5 percent to 26.3 billion euros.

Topics: daimler, bmw

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
As if seeing the future more than a decade from now, one of the top scientists in the world of robotics and automations is predicting that children born today won’t...
by - January 19, 2017
Ford has just recently unveiled the 2018 Ford Mustang, and as it turned out, the carmaker gave its beloved pony car a facelift. There have been mixed reactions about the...
by - January 19, 2017
The bidding war for one of the only 20 examples -- 21 actually, but the 00 version went to a museum -- of the classically beautiful Lamborghini Reventon built and...
by - January 18, 2017
Bentley once again confirmed its plans to push PHEV into their future lineups. As a matter of fact, the Bentayga SUV will be the first to have the plugin hybrid...
by - January 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries