Daimler revenue up; profit drops after 1-time gain

July 23, 2014 - 3:05 AM

BERLIN (AP) — Automaker Daimler AG reported a 6 percent increase in second-quarter revenue and confirmed its full-year targets on Wednesday as new models and cost-cutting efforts helped its performance, though net profit declined sharply after a big one-time gain last year.

The maker of Mercedes cars said net earnings for the April-June period were 2.2 billion euros ($3 billion), down from 4.58 billion euros a year earlier — a figure that was boosted by the sale of its stake in Airbus' parent company.

Revenue, however, climbed to 31.54 billion euros from 29.69 billion euros. Daimler's unit sales were up 4 percent, with 628,900 cars and commercial vehicles sold.

The company has been helped by the new version of Mercedes' flagship S-Class among other models and by an ongoing cost-cutting program. The Mercedes division's earnings before interest and taxes jumped 35 percent to 1.41 billion euros.

Daimler said it still expects "significant growth" over the full year in unit sales, revenue and pretax earnings. Earnings from the company's ongoing business are expected to accelerate in the year's second half, chief financial officer Bodo Uebber said.

Daimler's first-half revenue was up 9 percent at 61 billion euros, while net profit dropped 36 percent to 3.28 billion euros.