German carmaker Daimler AG reported lower earnings in the first quarter than a year earlier even as the company's sales rose to a new high and revenue increased in most of its divisions.
The company reported profit attributable to shareholders of €2.27 billion, or €2.12 per share, in the first quarter, down from €2.56 billion, or €2.39 per share, in the year-ago quarter. The S&P Capital IQ consensus EPS estimate for the quarter was €2.18, with five analysts reporting.
Daimler said unit sales rose 7% year over year to a record 806,905 vehicles in the quarter from 754,259 units in the year-ago quarter with all of its automotive divisions reporting higher sales. Sales of the company's Mercedes-Benz cars division rose 5% to a new high of 594,299 units and the Daimler trucks division's sales rose 21% to 113,846 units.
Revenue increased 3% year over year to €39.79 billion from €38.58 billion. Revenue was up 2% in the Mercedes-Benz cars division and rose 8% from the year-ago quarter in the Daimler truck division.
The company reported earnings before interest and taxes of €3.34 billion, down 12% from €3.77 billion in the prior-year quarter.
The Daimler trucks division's EBIT decreased 2% year over year due to higher raw materials expenses and exchange rate effects that were partially offset by higher unit sales, efficiency enhancements and gains on the sale of real estate. EBIT at the Mercedes-Benz vans and Daimler buses divisions fell 49% each from the prior-year quarter.
EBIT at the Mercedes-Benz cars division increased 3% year over year on strong sales of S-class vehicles tempered by expenditures for technology and future products and higher raw materials expenses.
For full year 2018, Daimler expects revenue and EBIT to be slightly higher than the previous year.
