Daimler Q2 earnings above outlook

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The premium German auto group said its earnings were significantly better than market expectations in the second quarter of 2016.

Daimler reported this week preliminary adjusted earnings before interest and taxes of 3.97 billion euros (4.4 billion dollars) for the second quarter of the year, up from 3.76 billion euros (4.16 million dollars) a year earlier. Gains were however lifted by the automaker’s van, buses and financial services units, while Mercedes-Benz cars and Vans division registered some slight fallbacks. The company also said it booked 440 million euros in special expenses linked to Takata airbag recalls as well as 400 million euros in costs related to legal proceedings, without however providing further explanations on the “reconciliation” outgoings. These are likely to be connected with the legal complaints made earlier this year by a series of US owners, claiming their Mercedes BlueTEC diesels have a similar emissions defeat device to the one used by Volkswagen. Daimler kept unchanged its forecast for full-year results, as it expects from them to slightly improve, except from the heavy-truck unit which is seen to bring earnings “significantly below prior-year level.”

The company managed to beats earnings estimates in a period of fierce fight for the lead of the premium segment, a race that Mercedes-Benz seems to win so far, helped by its efforts to refresh its entire lineup. The three-pointed start brand closed the first half of the year with a double-digit growth, selling more than one million vehicles worldwide.