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Daimler Q2 operating profit jumps 54% defying China slowdown
[FRANKFURT] Daimler's second-quarter operating profit rose 54 per cent as new luxury car model launches helped the carmaker defy a slowdown in car sales in China and to raise profit margins at its Mercedes-Benz Cars division.
The global rollout of a new version of its top selling C-Class helped Mercedes raise its operating margin, lifting overall adjusted earnings before interest and tax (EBIT) to 3.8 billion euros well above the 3.31 billion euros forecast in a Reuters poll.
Deliveries of Mercedes-Benz passenger cars in the first half rose 20 per cent to 500,700 vehicles. While rival auto makers recorded a slowdown in China sales, Mercedes saw June deliveries jump, helping overall sales of Mercedes passenger cars rise 38.5 per cent in the world's largest car market.
In the second quarter, the return on sales from ongoing business at Mercedes-Benz Cars came in at 10.7 per cent, up from 7.9 per cent in the same period last year.
Daimler is the first of the German premium auto makers to release results.