Daimler disclosed in an ad-hoc statement that Mercedes-Benz Cars logged a 29-percent surge earnings before interest and tax (EBIT) from ongoing business to EUR1.61 billion ($2.04 billion) in the third quarter of 2014. Frank Biller, an analyst with LBBW, remarked that Mercedes-Benz Cars, which includes Smart – posted results that are significantly better than expected, showing that concerns over a profit warning were unfounded.
According to Daimler, it is maintaining its profit forecast for its divisions for the full year 2014. The German car-making group remarked that it would review its guidance for 2014 industrial free cash flow -- considered a major factor for funding dividends -- after seeing it surge in the third quarter of the year.
Daimler has said that it expects full-year industrial free cash flow, adjusted for acquisitions and disposals, to drop from EUR3.2 billion posted logged in 2013. For the third quarter of the year, adjusted industrial free cash flow jumped from EUR1.6 billion to around EUR2.9 billion.
During the period, Mercedes sold over 412,000 vehicles for a year-on-year growth of around 12 percent. The surge in Mercedes deliveries was attributed to the launch of new models and increasing demand in China.