Daimler lifts 2020 profit outlook

FRANKFURT, Oct 25 (Arab News): German automaker Daimler raised its 2020 profit outlook on Friday as a 24 per cent jump in demand for luxury cars in China in the third quarter, a new record, helped turn around margins at its Mercedes-Benz cars division.

Benefiting from improved pricing and a fall in fixed costs, adjusted return on sales at its Mercedes-Benz Cars & Vans division rose to 9.4 per cent, up from 7.0 per cent a year earlier and rebounding from minus 1.5 per cent in the second quarter.

The car and truck maker said it now expected full-year earnings before interest and taxes (EBIT) to reach prior-year levels, compared with its previous expectation of a drop in earnings.

Daimler said it sold 45,000 hybrid and electric cars in the third quarter and expects sales to rise in the fourth quarter.

These cars delivered a positive contribution to margin and would allow the carmaker to meet European Union emissions goals.