Mercedes-Benz owner Daimler profits dip in spite of record unit sales

Profits of Mercedes-Benz maker Daimler dipped due to rising raw material expenses and currency headwinds.

Releasing its first quarter results, Daimler boasted record unit sales, up 7 per cent to 806,900 vehicles, but net profits were down from €2.7bn (£2.4bn) to €2.4bn (£2.1bn).

Overall revenue was up, rising by 3 per cent to $39.8bn, 8 per cent higher after adjusting exchange-rate effects.

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Daimler mentioned that the soaring cost of raw materials also took a chunk out of earnings.

Mercedes-Benz car sales were strong, as unit sales increased by 5 per cent to a high of 594,300, while revenue rose 2 per cent to €23bn (£20.2bn).

Head of Mercedes-Benz cars Dieter Zetsche said:

We are sustainably continuing along our profitable growth course and sold more vehicles in a first quarter than ever before. We aim to continue building on this and to further consolidate our leading position in the premium segment, because we have big plans for the future

Bodo Uebber, member of the Board of Management of Daimler responsible for Financial Services added: “We made a good start to the year and have continued investing in the future. With our strong balance sheet and good earnings, we are setting the course for a successful future for the company and for mobility.”