Daimler raises full-year outlook due to strong results in Q3 2010
By Steph, 29 Oct, 2010. 0 Comments
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As Daimler’s net income surpassed analysts' estimates of the demand for top-of-the-line E- and S-Class sedans in China and the US, the carmaker then raised its full-year profit forecast. Daimler’s third-quarter net income increased 28-fold to 1.61 billion euros ($2.21 billion) from 56 million euros a year ago. The profit estimates of 9 analysts averaged 1.09 billion euros. Meanwhile, sales had risen by 30% to 25.1 billion euros. CEO Dieter Zetsche raised his target for 2010 earnings before interest and taxes to over 7 billion euros from a prediction of 6 billion euros previously. For the first nine months of the year, Daimler had posted an operating profit of 5.7 billion euros.
Daimler's luxury-car sales are on track to recovery after the financial crisis as demand moves up in China and the US, the two largest auto markets in the world. Deliveries of heavy trucks at Daimler were affected largely by the recovering global economy. Jose Asumendi, a London-based analyst with Royal Bank of Scotland, said that “strong results” were seen all across the board.
However, Asumendi added, “Consensus is way too low.” Sales in China climbed 19% last month. Mercedes’ strategy to double deliveries had enabled it to beat the market. US auto sales in September increased to a seasonally adjusted annual rate of 11.8 million, the quickest pace since the “cash for clunkers” program ended. Last month, Mercedes sold more units in the US than BMW AG and Toyota Motor Corp.'s Lexus. [via autonews - sub. required]
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