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DAIMLER

Shares of Daimler AG (ETR: DAI) rose more than 2% on Friday after the owner of Mercedes Benz brand raised its profit forecast amid strong sales in China.

Daimler reported it sold 772,700 cars across the group, which is 8% lower compared to the same period a year ago. Revenue fell 7% to €40.3 billion from €43.3 billion. The group said it recorded strong sales numbers in China.

Still, EBIT rose 14% to €3.07 billion on stronger adjusted profit – €3.48 billion. Net profit was reported also higher at €2.15 billion. Daimler said its cash reserves stand at €5.10 billion.

“We have successfully pushed forward our comprehensive efforts regarding cost control and cash management. With this momentum, we are on track to make our business more weatherproof.

“However, the transformation of Daimler is a long-distance race. We are keeping up the pace with focus and full discipline,” Harald Wilhelm, Member of the Board of Management of Daimler AG, said in a statement.

Following higher profits it made Daimler in the last quarter, Daimler now forecasts an adjusted EBIT margin of between 4.5% and 5.5% for the full year at the car and vans unit, and 1% to 2% for the trucks division.

Daimler share price jumps on strong China sales October 2020

Daimler share price rose over 2% to erase most of this week’s losses and trade around the €49.00 handle.

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