German carmaker Daimler predicted on Thursday a significant gain in profit this year after demand in China boosted sales of the group’s flagship luxury Mercedes-Benz brand.
Fourth-quarter earnings before interest and taxes (EBIT) from ongoing business rose to 2.8 billion euros (3.2 billion dollars) from 2.6 billion euros in the same period in 2013. Revenue was up 11 per cent to 35.7 billion euros.
“Daimler is on an upward curve,” Daimler chief Dieter Zetsche told the group’s annual press conference in Stuttgart. “We intend to reach a level of profitability that is unprecedented at this company.”
While group revenue for the full year climbed 10 per cent to 129.9 billion euros, group EBIT held steady at 10.8 billion euros, the company said.
Total sales of Mercedes Benz cars rose 10 per cent to a record 1,722,600 vehicles in 2014 helping the group to catch up with the world’s other premium auto makers – BMW and Audi.
Zetsche said he expects Daimler’s luxury car offshoot this year to boost its market share in China, which is the world’s biggest car market.
“China holds an important key to profitable growth at Daimler…It’s the market that will determine who comes out on top in the premium segment,” Zetsche said. “This year will be even better”.
Daimler plans to reward its shareholders by proposing at the company’s annual general meeting in April to raise its dividend from 2.25 euros to 2.45 euros a share.
GNA
