) second quarter 2013 earnings nearly tripled to €4.6 billion
($6.1 billion) or €2.65 ($3.5) per share from €1.6 billion or
€1.39 per share in the prior-year quarter. The sale of the
remaining EADS shares had a positive impact on earnings.
Adjusting for the EADS effect, the company reported adjusted
earnings per share of €1.25 ($1.7) in the quarter.
The company's revenues for the quarter increased 2.8% to $29.7
billion ($39.2 billion) from $28.9 billion in the year-ago
quarter. Unit sales went up 6% to 605,823 vehicles. The company
benefited from the launch of new S-Class in May and modification
of Mercedes-Benz trucks in Europe, which are now available with
Euro VI emission technology.
segment went up 6% to €16.3 billion ($21.5 billion) in the
quarter. Unit sales augmented 9% to 404,711 cars. However, the
segment EBIT declined 22.1% to €1.0 billion ($1.4 billion)
compared with €1.3 billion in the second quarter of 2012. The
decline in earnings was due to changed model mix and increased
costs associated with the product launch and increased production
decreased 2% to €8.0 billion ($10.6 billion). Unit sales improved
to 123,763 units from 122,217 trucks a year ago owing to the
recovery in Brazil. EBIT went down 17.2% to €434 million ($572.7
million) from €524 million in the second quarter of 2012. The
year-over-year decline in earnings was driven by sluggish demand
in Asia and Western Europe, higher warranty costs and exchange
were flat at €2.4 billion ($3.2 billion). Unit sales went up to
69,436 vehicles from 69,324 vehicles a year ago. Sluggish demand
and intense competition in Europe adversely affected the results
of the company. EBIT increased to €204 million ($269.2 million)
from €200 million in the second quarter of 2012 owing to changes
in product mix and higher expenditure related to the launch of
new products, including Sprinter Classic in Russia.
fell 8% to €0.9 billion ($1.2 billion). Unit sales dropped to
7,913 buses from 8,418 units. EBIT was €27 million ($35.6
million) compared with a loss of €59 million in the corresponding
quarter of 2012. Improvement in earnings was due to higher unit
sales in European business and better efficiency.
Daimler Financial Services
increased 9% to €3.5 billion ($4.6 billion). EBIT declined 6% to
€319 million ($421.0 million) from €338 million year ago. The
company recorded a 10% increase in new leasing and financing
contracts to 298,000, which were valued at €10.3 billion ($13.6
For 2013, the company expects worldwide demand for cars to
improve by 2% to 4%, driven by rising demand in the U.S and
expansion in the Chinese market. Global demand for medium and
heavy-duty trucks is expected to improve marginally in 2013 owing
to the moderate economic dynamism. With this, Daimler expects
total unit sales to augment in 2013.
Product launches and numerous model changes may boost the
revenues in 2013. Emerging markets and the North American market
are also expected to record above-average growth in the year.
Earnings are expected to improve significantly in the second half
of 2013. However, the company expects 2013 EBIT to be lower than
Daimler is a leading auto and truck producer and has it's
headquarter in Stuttgart, Germany. The company develops,
manufactures, distributes and sells passenger cars, light trucks
and commercial vehicles. It also provides financial and other
services relating to its automotive business. Currently, it
retains a Zacks Rank #2 (Buy).
Some other stocks that are performing well in the industry where
Daimler operates include
Nissan Motor Co. Ltd.
Fuji Heavy Industries Ltd.
). They are Zacks Rank # 1 (Strong Buy) stocks.
DAIMLER AG (DDAIF): Get Free Report
FUJI HEAVY ADR (FUJHY): Get Free Report
NISSAN ADR (NSANY): Get Free Report
VOLKSWAGEN-ADR (VLKAY): Get Free Report
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