Daimler is back in profit, far exceeding estimates

The German automotive group Daimler reported a pre-tax profit and interest rate (EBIT) of EUR 3.07 billion (CZK 83.9 billion) in the third quarter due to an unexpectedly rapid market recovery, significantly exceeding analysts’ estimates.

Daimler expects a solid result in the last quarter, provided that it does not see further area quarantines. In the previous two quarters, the carmaker had an operating loss due to the effects of the covid-19 disease pandemic.

Analysts in the Refinitiv survey expected Daimler to have a pre-tax profit and interest of 2.14 billion euros. In the second quarter, the company had an operating loss of 1.68 billion euros.

In response to the losses, the Mercedes-Benz division in the United States stopped production of sedans and focused on more profitable sport utility vehicles (SUVs), merged with Volvo Trucks in the development of electric motors and stopped the alliance for the development of automated vehicles with BMW.

Daimler said this month that Mercedes-Benz will change its strategy by 2025, reducing fixed costs, investment and R&D spending by a fifth. Mercedes-Benz wants to abandon its sales volume strategy, which has been in place for decades, and will focus on the most profitable segments of the industry, such as limousines and SUVs.

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