German luxury vehicle producer Daimler raised its projections on Wednesday, forecasting a substantial increase in operating revenue this year after a rise in sales of Mercedes-Benz luxury automobiles and sports utility vehicles, enhanced by the launch of new models.
Daimler stated it now expected substantial development in volume sales, revenue and group earnings prior to interest and tax (EBIT) this year after its first-quarter net profit doubled to 2.8 billion euros ($3.1 billion).
“We are extremely confident for the rest of the year to accomplish our financial as well as our strategic objectives,” stated Daimler’s Chief Financial Officer Bodo Uebber.
In February Daimler had stated it anticipated just small development in group EBIT, however record sales of Mercedes passenger cars in the very first quarter assisted the automaker produce forecast-beating results.
Mercedes introduced the new variation of its E-Class saloon in 2016, with volume sales considering that getting traction. In March alone sales of the brand-new model increased by 65 percent and Daimler stated on Wednesday it now anticipated a considerable increase in sales of Mercedes-Benz Cars for the complete year.
Daimler’s group EBIT leapt 87 percent to 4.01 billion euros ($4.25 billion) in the very first quarter, due to part to 690 million euros in one-off gains.
EBIT at Mercedes-Benz Cars increased 60 percent to 2.23 billion euros, providing a return on sales of 9.8 percent after the department reported a 15 percent increase in first-quarter sales.
Daimler raised its projection for its monetary services division, saying it now anticipates a slight boost in EBIT this year.
Daimler published key first-quarter earning figures earlier this month, revealing that revenues were raised by the revaluation of a stake in mapping company HERE, as well as by the sale of some real estate and the reversal of an impairment charge on its stake in automaker BAIC.
A more stringent interpretation of EU monetary reporting standards has forced Daimler to begin providing projections based upon unadjusted numbers, boosting the scope for one-off gains and losses to distort agreement in the short-term.