Daimler shares increased over 3 percent in early trade after the Mercedes maker reported higher than anticipated first-quarter profits, enhanced by one-off gains and an increase in purchases of luxury cars.
In an unscheduled launch of headline figures prior to entire results due on April 26, Daimler stated group incomes prior to interest and tax leapt 87 percent to 4.01 billion euros ($4.25 billion), due to 690 million euros in one-off gains.
Daimler’s results were raised by revaluing a stake in mapping company HERE, in addition to by the sale of some real estate and the turnaround of an impairment charge on its stake in Chinese automaker BAIC.
Daimler shares pared gains to trade 1.4 percent greater at 67.54 euros by 0801 GMT, still topping the German blue-chip increased 0.6 percent.
“Solid revenues offer some relief to auto financiers who have been increasingly downcast in recent weeks,” stated expert Arndt Ellinghorst of Evercore ISI.
DZ Bank expert Michael Punzet stated the “strong start into 2017 underpins our positive view on Daimler”.
EBIT at the Mercedes-Benz Cars unit 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.
In March alone, purchases of the Mercedes-Benz E-Class rose by 65 percent.