(Reuters) – Mercedes-Benz maker Daimler AG announced preliminary adjusted earnings before interest and taxes (EBIT) of 5.42 billion euros (6.42 billion US dollars) for the second quarter on Thursday, with the Car and truck divisions have exceeded analysts’ targets.
The results from Mercedes-Benz Car and Van were supported by price and cost discipline and helped offset the effects of a global shortage of semiconductors. The adjusted EBIT for Mercedes-Benz cars and vans is 3.60 billion euros compared to the consensus of 3.1 billion euros, it said.
The adjusted EBIT for Daimler trucks and buses was 831 million euros compared to the consensus of 680 million euros, the company announced in a statement.
“Daimler Trucks & Buses’ sales rose in almost all regions due to improved market conditions, which led to higher profitability in the second quarter. In addition, the EBIT of Daimler Trucks & Buses benefited from strong pricing, higher after-sales business and positive, non-recurring valuation effects of around 100 million euros, “it said.
The adjusted EBIT of a total of 5.4 billion euros exceeded expectations of 4.3 billion euros, it said.
Daimler’s truck division wants to reduce costs and investments by 15% by 2025 and increase profit margins in all regions regardless of market conditions, it said in May.
The preliminary EBIT of the group for the second quarter was 5.19 billion euros. In the second quarter of last year, the company recorded an EBIT loss of 1.68 billion euros.
The company’s CFO, Harald Wilhelm, said last month that Daimler is well on its way to outsourcing Daimler Truck, the world’s largest truck and bus manufacturer, by the end of the year.
As part of the planned spin-off, a significant majority stake in Daimler Truck is to be distributed to Daimler shareholders.
Last month, the company also announced that it would cut working hours at some plants as automakers suffered from semiconductor shortages.
($ 1 = 0.8448 euros)
(Reporting by Kanishka Singh in Bengaluru; Editing by Peter Henderson and Christopher Cushing)