Daimler reports pretax profit for 1st quarter

By GEIR MOULSON
Monday, April 19, 2010 12:33 pm

Daimler AG reported a pretax profit of euro1.2 billion ($1.6 billion) for the first quarter on Monday, saying that its performance was bolstered by "very solid results" at its core Mercedes-Benz Cars unit.

The preliminary figure for first-quarter earnings before interest and taxes compared with a loss of euro1.4 billion in the first three months of 2009. Daimler said in a brief statement that it was above market expectations.

The company did not give net earnings figures. However, it said that its group revenue for the first quarter was euro21.2 billion.

Daimler said it would release full first-quarter figures on April 27.

Its performance "was supported by very solid results at Mercedes-Benz Cars in consequence of strong sales, model mix and pricing as well as a favorable overall cost position during the first quarter," the company said.

First-quarter EBIT for Mercedes-Benz Cars came in at euro806 million on revenue of euro11.6 billion, Daimler said. It said the division expects a full-year EBIT from ongoing business of between euro2.5 billion and euro3 billion.

The Daimler Trucks division had earnings of euro130 million on revenue of euro4.9 billion. The company forecast full-year EBIT of between euro500 million and euro700 million for the unit.

Daimler said that "negative special reporting items" were included in results for Daimler Trucks and the Daimler Financial Services division, which earned euro119 million.

A gain from selling its stake in India's Tata Motors and the negative impact from Airbus parent EADS NV "are at similar levels," Daimler said, without providing figures.

Daimler earlier this year sold its 5.34 percent stake in Tata and said the sale would translate into a euro265 million boost to pretax profit.

Daimler owns 22.5 percent of the voting rights and 15 percent of the equity in EADS, which has been troubled by delays and cost overruns on its A400M military transporter project.

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