Daimler profit jumps to 4.4 billion euros, margin outlook up

German car and truck company Daimler had a strong rebound in the first three months of the year

The company on Friday raised its outlook for an important measure of profitability this year, saying that it now expected profit of 10%-12% on sales of its Mercedes-Benz cars, up from an outlook for 8%-10% in its last estimate. Strong profits on conventional vehicles are key to funding the huge investments in new technologies such as electric cars and digital services that are shaking up the auto industry.

Chief Financial Office Harald Wilhelm said that “after this promising start, we are very confident that we can keep up the pace to improve our margins on a sustainable basis and at the same time expand our electric vehicle line-up.” He cited strong tailwinds for the company’s business in China.

The company is accelerating its introduction of new electric vehicles; on April 15 it showed off the EQS, the battery-powered equivalent of its flagship S-Class large sedan.

Daimler AG revenue rose 10% to 41.0 billion euros as sales at the Mercedes-Benz car business jumped 15% to 538,869. Daimler’s truck business, slated for spinoff later this year, saw sales revenue slip 1% to 8.66 billion euros but more than doubled adjusted operating profit to 518 million euros from 247 million in the year-ago period. The division’s brands include Freightliner and Western Star trucks.

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