Second quarter pre-tax profits of Daimler’s Mercedes Cars operation, dragged down by the weight of €799m exceptional one-off charges, chiefly the cost attributable to the
Takata recall and inventory adjustments, slumped 37 per cent to €1,410m from a still lofty €2,227m during the corresponding period last year
First half pre-tax profits plunged nearly a third to €2,805m from €4,068m in the corresponding interim period a year ago.
For the Mercedes Cars offshoot these exceptional one-off charges took a heavy toll on margins.
That’s a much-decimated 6.4 per cent for this year’s second quarter and an only marginally higher 6.7 per cent for the first half.
By contrast, unit sales during this year’s second quarter rose 9 per cent to 546,517 units, bringing sales for the first half to 1,043,273 units, up 9 per cent.
In consequence, if adjusted for special one-off items, first half pre-tax profits reached some €3,604m, which adds up to a notably smaller 11.4 per cent drop in Mercedes’ first half profits. Including these exceptionals, as shown in Daimler’s first half income statement, pre-tax profits of Mercedes’ car business dropped by almost a third to €2,805m.
However, before one-off items the first half margin of Mercedes’ car side eased back to a notably less discouraging 8.6 per cent.
Nevertheless, this still compares with a higher 10 per cent pre-tax margin during last year’s first half.
However, adjusted for one-off distortions, the second quarter pre-tax margin of the Mercedes Cars side was 10 per cent compared with an only marginally better 10.6 per cent a year
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