Daimler profits fall short
FRANKFURT, Germany — German automaker Daimler’s profits barely rose and were short of market expectations in the second quarter, as its Mercedes-Benz luxury car division boomed while earnings lagged at its truck, van and bus businesses.
The earnings were overshadowed by the growing controversy over diesel technology hanging over the automaker — and the auto industry in general — ahead of a meeting in Germany of carmakers and government officials next week.
The Stuttgart-based company reported today that net profit was up a scant 2 percent compared with a year ago, $2.9 billion. Revenue increased 7 percent to $48 billion.
The profit was short of analyst estimates as compiled by financial information provider FactSet. On the bright side, the Mercedes division had its best quarter for unit sales ever and with $2.8 billion in operating profit. Mercedes division profits were boosted by strong sales of the E-Class sedan, which is equipped with extensive driver assistance technology, and of the company’s SUVs, which bring high profits per vehicle.
But operating earnings fell 13 percent in its truck business, and also lagged at the van and bus divisions.
The earnings announcement takes place amid extensive public discussion of the future of diesel and what to do about excessive pollution emissions. The government has summoned carmakers to a diesel summit on Aug. 2 to try to lower pollution levels and ensure the technology has a future. There have been calls for diesel bans in several German cities.
CEO Dieter Zetsche said during a conference call with journalists that the company’s new generation of diesel engines offered lower emissions and that diesel can make an important contribution to reducing emissions of carbon dioxide.
