Mercedes-Benz owner Daimler enjoys profit rebound following lockdown loss

Time 10:12 am, October 23, 2020

Mercedes-Benz’s parent company Daimler saw its net profit leap to 2.16bn euros in the third quarter – up nearly a fifth on a year ago.

The figure – equivalent to some £1.95bn – was a massive turnaround on the net loss of 1.9bn euros (circa £1.7bn) it suffered during the second quarter.

It said it had clamped down on costs, and sales had recovered following the lockdowns earlier this year.

Chief financial officer Harald Wilhelm said earnings were boosted by highly profitable cars such as the GLE and GLS SUV. China’s economic recovery played its part, too.

He added that the existing version of the S-Class luxury saloon also did well, even though it is being replaced by a new model.

Daimler has now raised its outlook for 2020, and expects full-year operating earnings to equal those from 2019 – that is, before the pandemic. Earlier, it had expected this year’s profit total to be below last year’s.

Sales revenue fell by seven per cent to 40.28bn euros (circa £36bn).

John Bowman's avatar

John has been with Car Dealer since 2013 after spending 25 years in the newspaper industry as a reporter then a sub-editor/assistant chief sub-editor on regional and national titles. John is chief sub-editor in the editorial department, working on Car Dealer, as well as handling social media.

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