--Daimler's net profit increased to EUR2.05 billion for the third quarter

--German car maker raises 2020 group EBIT outlook, but revenue expectations significantly below the prior year

--The company expects positive developments from improving markets and cost-saving measures to continue in the fourth quarter

 

By Kim Richters

 

Daimler AG on Friday raised its full-year outlook for group earnings after reporting an increase in net profit for the third quarter.

Net profit for the quarter rose to 2.05 billion euros ($2.42 billion) from EUR1.72 billion a year earlier, the German premium car maker said.

As reported earlier this month as preliminary figures, earnings before interest and taxes also increased year-over-year, coming in at EUR3.07 billion compared with EUR2.69 billion. Adjusted EBIT--also released previously--was EUR3.48 billion compared with EUR3.14 billion.

Daimler said its business profited from improving markets and cost-saving measures, and it expects the positive development to continue in the fourth quarter.

Revenue, however, fell to EUR40.28 billion from EUR43.27 billion.

As for the full year 2020, the car maker raised its group EBIT outlook, now expecting it to be at the prior year's level of EUR4.33 billion. It had previously forecasted these earnings to be lower than 2019's figure but still positive.

Unit sales and revenue for 2020 are expected to be significantly below the prior year, Daimler said. The car maker's previous full-year revenue came in at EUR172.75 billion and it sold 3.34 million vehicles, according to its 2019 annual report.

 

Write to Kim Richters at kim.richters@wsj.com

 

(END) Dow Jones Newswires

October 23, 2020 02:45 ET (06:45 GMT)

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