Daimler shares are in the green Friday, as the German carmaker’s first-quarter earnings included lower-than-expected profits on one-off factors. However, a positive outlook on luxury car sales, despite concerns over exchange rate headwinds, helped lift the stock during morning trade.
By 1140 BST, Daimler shares were 0.49% higher at €65.35. The stock has been pretty stable in recent weeks after a notable drop towards the beginning of April.
The German carmaker said Friday that sales grew 7% to 806,900 in Q1 2018 from a year earlier. Revenues rose 3% to €39.8 billion, compared with Q1 2017. However, profits of $3.3 billion were some 12% lower than the €3.8 billion achieved in the year-earlier period.
Daimler stated the Q1 2017 profit was boosted by a one-off, special item that was not repeated this year.
“We are sustainably continuing along our profitable growth course and sold more vehicles than ever before in a first quarter,” said Daimler’s chairman of the board and head of Mercedes Benz, Dr. Dieter Zetsche.
“We aim to continue building on this and will systematically implement our strategy with the five pillars – CORE, CASE, CULTURE, COMPANY and CUSTOMER,” Dr. Zetsche added.
Outlook intact despite currency headwinds
Looking ahead, Daimler said that it has had to make some minor changes to the details of its outlook, due to currency fluctuations – specifically the stronger euro.
However, while the carmaker faces increased costs for manufacturing parts and sales prices will also be affected, it continues to anticipated higher sales in 2018 than 2017. And, it’s revenue expectations are for similar levels to those reported in 2017.
“At Mercedes-Benz Cars, the expected exchange rate developments and lifecycle effects will dampen the development of revenue, so the division is expected to post full-year revenue at the high level of 2017,” Daimler said.
The German manufacturer added that with planned efficiency changes, it expects to achieve increased sales levels and steady revenues, with only a “slight increase” in its workforce.