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Daimler Reports Strong Q3

Daimler said its industrial units had generated free cash flow

Daimler on Oct. 19 reported better-than-expected third quarter figures including profit at its Mercedes Benz division, pushing its shares up by more than 7%.

Daimler said sales came to 19.3 billion euros (US$28.8 billion), and that its industrial units had generated free cash flow, the lifeblood of a company, of 2.3 billion euros in the first nine months of the year.

"Daimler anticipates a positive free cash flow in the industrial businesses in full-year 2009," a statement to financial markets said.

Core earnings came to 470 million euros, with Mercedes Benz back in the black at 355 million euros while Daimler's truck unit showed a loss of 127 million euros. Daimler also booked costs related to the restructuring of its Japanese truck subsidiary Mitsubishi Fuso.

The group's financial services division added 101 million euros to core earnings however as the easing financial crisis took pressure off that unit.

Daimler's results were below the level of a year earlier but higher than forecasts by analysts to which the company had access.

The group said its closely-watched net cash position stood at around 6.7 billion euros, which was well received by investors.

Daimler had posted a sharp second quarter net loss of 1.06 billion euros in July and said at the time it expected sales to show a clear decrease for the full year.

Copyright Agence France-Presse, 2009

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