Daimler Q2 net soars 30% to 1.7 bn euros

German car maker Daimler AG today reported a 30% jump in net income to 1.7 billion euros ($2.5 billion) for the April-June quarter of 2011, driven by strong demand for vehicles in major markets like Brazil and India.

The entity had registered a net income of 1.31 billion euros in the second quarter of 2010, Daimler AG said in a statement.

The company's revenues increased to 26.33 billion euros in the quarter under review from 25.1 billion euros in the year-ago period, translating into a growth of 5%.

Stuttgart-headquartered Daimler attributed its robust quarterly profit to strong performance in markets such as India, Brazil and Russia. Besides, Daimler's core Mercedes-Benz cars segment and truck unit also contributed to the profit.

"We now assume that Group EBIT (earnings before interest and tax) will develop more positively than we previously expected and will very significantly exceed the level of 2010," Daimler Chief Executive Dieter Zetsche said.

In both China and India, demand for cars exceeded the levels seen a year ago, but only moderately. However, in Brazil, new car registrations accelerated again at double-digit growth rates, while the Russian market expanded by more than 40% thanks to ongoing state incentives for car buyers.

"Demand for cars in the major emerging markets of China, India, Brazil and Russia will probably continue to grow. But rates of growth in China and India are likely to be distinctly lower than last year," the German firm said.

In the second quarter of 2011, Daimler sold 527,600 cars and commercial vehicles worldwide, 6% higher than the year-ago period.

Mercedes-Benz increased its unit sales in the second quarter by 4% to a new record of 357,600 vehicles. Mercedes-Benz cars segment contributed 1.57 billion euros to second quarter EBIT, up from 1.38 billion euros last year.

The company's truck unit registered an EBIT of 474 million euros in the second quarter, compared to 300 million euros last year.

Meanwhile, the company said Daimler Financial Services started business operations in India in July this year. The newly founded company, Daimler Financial Services India, will support the sale of vehicles in the country by providing financing, leasing and insurance for Mercedes-Benz customers and dealers.

"Starting in 2012, Daimler Financial Services India will provide financial services also for the BharatBenz truck brand, which has been newly developed by Daimler Trucks specifically for the Indian market," the firm said.