BERLIN (dpa-AFX) - Shares of Daimler AG (DDAIF.PK) were losing around 3 percent in the morning trading, after the German auto giant trimmed its forecast for fiscal 2016 revenues and unit sales, while it backed adjusted EBIT view. Meanwhile, in the third quarter, the company recorded higher earnings and revenues, with increased sales volumes.
For the full year, the company now expects revenues in the magnitude of the previous year and slight increase its total unit sales. Previously, the company was projecting slight increase in revenues and significant growth in unit sales for the year. The company continues to expect that EBIT, adjusted for special items, will increase slightly than last year.
Bodo Uebber, a management board member, said, 'We are growing sustainably and profitably. Daimler remains on track to achieve our earnings forecasts for the full year, despite volatile sales and finance markets.'
Revenue growth is expected in Western Europe and Asia, while revenue in the NAFTA region is likely to be below the prior-year level.
For the third quarter, net profit attributable to shareholders increased to 2.59 billion euros from 2.38 billion euros previous year. Earnings per share were 2.43 euros, 9 percent higher than last year's 2.23 euros.
Earnings before interest and tax or EBIT grew 10 percent to 4.037 billion euros, and Group EBIT, adjusted for special items, reached its highest level to date of 4.01 billion euros, up 10 percent.
Third-quarter revenue increased 4 percent to 38.60 billion euros from 37.28 billion euros a year ago. Adjusted for exchange-rate effects, revenue grew by 3 percent.
In the third quarter of 2016, Daimler sold 754,100 cars and commercial vehicles worldwide, more than ever before in a third quarter, a growth of 5 percent over last year.
Mercedes-Benz Cars, Daimler's largest division, recorded 12 percent rise in revenues to 23.3 billion euros, with unit sales up 11 percent to 565,600 vehicles. Mercedes-Benz Cars' EBIT also increased significantly, benefited mainly by growing unit sales in the SUV segment and the market success of the new E-Class.
Mercedes-Benz Vans also posted higher earnings, revenues as well as unit sales, despite weak results in Eastern Europe, primarily influenced by weak demand in Turkey and Russia. The market environment in Latin America also remained difficult. In China, unit sales more than doubled following the launch of the Vito.
Meanwhile, Daimler Trucks' earnings and revenues were hurt by weak unit sales on lower demand in many key markets, mainly NAFTA region, Turkey and the Middle East. Daimler Buses also posted weak results mainly on difficult situation Turkey and Brazil.
The company added that the automotive divisions were also affected by the restructuring of their own dealer network.
In Germany, Daimler shares were trading at 64.12 euros, down 2.85 percent.
Copyright RTT News/dpa-AFX