Daimler raised its 2010 operating profit forecast to $7.8 billion
After Daimler AG posted higher sales in China and the US that exceeded quarterly estimates, it raised its 2010 operating profit forecast to 6 billion euros ($7.8 billion).
Daimler, the world’s second-largest maker of luxury cars, said on July 16 that it will raise its target this week, previously aimed for full-year earnings before interest and taxes of over 4 billion euros. For 2009, Daimler posted an operating loss of 1.51 billion euros. Aside from Daimler, its rivals BMW AG and Audi AG benefited from the increase in demand in China and the US as well.
Daimler, which is the largest maker of heavy trucks, has repeatedly raised targets in 2010 as demand rises along with the global economic recovery.
Marc-Rene Tonn, an analyst at M.M. Warburg in Hamburg, recommends buying the shares. He reasons that the guidance is unsuspectingly strong, explaining further that 6 billion euros is clearly at the upper end of the expected range.
He comments that even with the expectation that sales typically slow down in the second half of the year, the company appears to be “very confident.” Before Daimler made the announcement, it had risen 19% since April 19, the day it started raising forecasts.
[via autonews - sub. required]
Source: Car news, Car reviews, Spy shots
