Things are going well for Daimler AG with the operating profit for the second quarter of 2015 having jumped by 54% compared to the same period last year.
This impressive success is due to Mercedes-Benz trumping its premium brand rivals on the most important market of the moment – China -, as well as the launch of several new models which boosted sales overall.
Total earnings before interest and taxes have reached 3.78 billion euros, up from 2.46 billion euros a year earlier, hence the 54% increase mentioned earlier. The actual profit from carmaking has finally broken the 10% milestone and is up to 10.5% of total revenue, while sales have registered an increase of 19 per cent with a total of 37.5 billion euros.
According to Daimler’s own forecast, revenue and earnings from ongoing business will rise significantly this year. The numbers for the second quarter of 2015 were the highest of any three months in the company’s history.
Dieter Zetsche is confident the automotive unit can sustain profitability at that level throughout the year, since new models are being launched as we speak. Arndt Ellinghorst, a London-based analyst at Evercore ISI said: “they have strong momentum from new products as well as positive currency effects,” he said. “The margin could rise as high as 12 percent.”
As stated previously, Mercedes-Benz’s goal is to become the number one premium manufacturer in the world, for which task it has to overtake current leaders BMW and second placed Audi. There’s also a timeframe: Mercedes-Benz has to do it by the end of this decade.
With four new SUV models planned for this year and the arrival of the new E-Class early next year – the core model of the whole range – Mercedes-Benz looks set to overtake Audi by the end of the year, who they are now (at the half year mark) trailing by just under 4,000 units sold. Audi themselves have just launched the new Q7 SUV, so the contest could be a close one.
On the other hand, Mercedes-Benz was alone among the three premium brands to register a sales growth on the Chinese market last month, rising by no less to 39% as opposed to BMW’s drop of 0.1% and Audi’s 5.8%.