Mercedes-Benz maker Daimler AG on Thursday reported preliminary adjusted group earnings before interest and taxes (EBIT) of 5.42 billion euros ($6.42 billion) for the second quarter, with the car and truck divisions beating analyst targets.
Mercedes-Benz Cars & Vans’ results were helped by pricing and cost discipline, which helped offset any impact from a global shortage of semiconductors. Adjusted EBIT for Mercedes-Benz cars and vans was EUR 3.60 billion, compared to a consensus consensus of EUR 3.1 billion.
The company said in a statement that adjusted EBIT for Daimler trucks and buses was 831 million euros, while the consensus was 680 million euros.
“Daimler Trucks & Buses sales grew on improved market conditions in almost all regions, which translated into higher profitability in the second quarter. In addition, Daimler Trucks & Buses EBIT was driven by strong pricing, increased after-sales business and benefited from positive, non-recurring valuation effects of approximately EUR 100 million.
It added that the overall adjusted EBIT of €5.4 billion topped expectations of €4.3 billion.
Daimler’s truck unit aims to cut costs and capital expenditures by 15% by 2025 and boost profit margins across all sectors regardless of market conditions, it said in May.
The group’s initial EBIT for the second quarter was 5.19 billion euros. In the second quarter of last year, the company reported an EBIT loss of 1.68 billion euros.
The company’s chief financial officer, Harald Wilhelm, said last month that Daimler was on track to spin off Daimler Trucks, the world’s largest truck and bus maker, by the end of the year.
Under the planned spin-off, a significant majority stake in Daimler Trucks will be distributed to Daimler shareholders.
Last month, the company also said that it is cutting working hours at some plants as carmakers are facing shortage of semiconductors.
($1 = 0.8448 Euro)
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