Daimler Net Profit Down Over €100 Million for 3rd Quarter

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AG's total revenue was up 3% to €28.6 billion in the third quarter, but that all of the good news for the company. Pre-tax earnings were €1.921 billion for the third quarter of 2012, compared to €1.968 billion in the same period of 2011. Net profit was also down to €1.205 billion, compared to €1.36 billion in the third quarter of 2011. 

“Due to the economic challenges, Daimler will not match the high prior-year EBIT [pre-tax earnings] in full-year 2012, but will still post good earnings once again. “But we are not yet at the level that we aim to reach in the medium to long term. We have therefore initiated appropriate measures for all divisions and are thus prepared for a difficult market environment,” said Daimler Chairman Dr. Dieter Zetsche. 

Despite the lower profits and revenues, unit sales were up 1% to 528,600. 

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Cars set a new record for unit sales for the third quarter by selling 345,400 cars, up 2% over last year. Total revenue for the company was €15.2 billion, compared to €13.8 billion last year. Pre-tax earnings were  €975 million, compared to  €1.108 billion last year. 

Daimler Trucks sold 3% more cars in the third quarter to 119,100 trucks. Total revenue was up 6% to  €8.1 billion, and pre-tax earnings were  €507 million, compared to  €555 million last year. 

Mercedes-Benz Vans unit sales were 55,700 units, which is down compared to 63,500 last year. Revenue was also down at  €2.1 billion, compared to  €2.2 billion last year. Pre-tax earnings were significantly down. The division made  €75 million in the third quarter, compared to  €200 million last year. Daimler blames the drop on poor Western European sales. 

Sales were also down for Daimler Bus division. Unit sales were 8,300 vehicles, compared to 9,200 last year. Revenue was down €90 million to €951 million, and pre-tax earnings were negative €45 million, compared to   positive €25 million last year. 

Daimler's financial services division made a significant contribution to the company. It made  €10 billion, which was up 16% over last year. This was due to 268,000 new vehicle leases. Pre-tax earnings were  €322 million, which is down slightly from the  €337 million that it posted last year. 

The company anticipates that it will continue to grow for the rest of the year, but pre-tax revenue will be lower than expected at  €8 billion.