Daimler’s earnings recovery is ‘gaining traction’ according to an analyst who spoke to just-auto today.
Creative Global Investments analyst Sabine Blümel says that Daimler’s strong preliminary second quarter results were driven by a booming Mercedes-Benz Cars division that generated an EBIT of EUR1.38bn and a 9.8% margin.
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“We have stepped up our estimates for Daimler’s earnings recovery this year,” she said.
While the earnings momentum at Mercedes-Benz Cars is expected to turn negative from the second half of this year, Blümel expects the recovery at Daimler Trucks to strengthen with the division becoming the main driver of the earnings improvement in 2011.
The main profit and margin drivers for M-B Cars have been NAFTA, China and other markets in Asia, where sales boomed and the model mix improved, Blümel maintains.
“And this was further supported by a more favourable exchange rate,” she adds.
But she also points to a sharp rebound at Daimler Trucks. Daimler Trucks’ second quarter provisional EBIT more than doubled quarter-on-quarter with a 38% year-on-year jump in revenue.
“The year-on-year second quarter EBIT swing of EUR800m was driven higher by restructuring efforts in North America and Asia and the gradual recovery in most of its international markets,” she says.
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