Daimler net profit up on higher sales

BERLIN — Germany’s Daimler, maker of Mercedes-Benz luxury vehicles, said Thursday its net profit rose in the third quarter, helped by higher auto and truck sales as well as efficiency gains.

Net profit jumped 53 percent year-on-year to 1.84 billion euros ($2.54 billion) in the three-month period to September as income tax payments fell.

Operating profit rose 16 percent to 2.23 billion euros, slightly better than a forecast of 2.07 billion euros from analysts polled by Dow Jones Newswires.

“This shows that the high investments we have made were money well spent,” said chief executive officer Dieter Zetsche.

The Stuttgart-based company gave a forecast for the full year, predicting earnings before interest and tax at about 7.5 billion euros, below the previous year’s 8.1 billion euros.

Previously the company had only said profit would decline as it invests in new models.

source: interaksyon.com

France bans sale of latest Mercedes cars

FRANKFURT — The latest models of Mercedes cars cannot be sold in France as they still use an air conditioning refrigerant the EU says emits excessive greenhouse gases and should be replaced, the German auto company said on Tuesday.

“Only new cars are subject to the measure,” a company spokesman told AFP adding that customers confronted with the ban are to be offered alternate models.

Since January 1, European Union norms demand that car makers use a cleaner R1234yf refrigerant, deemed less polluting than older products.

But Daimler is sticking to R134a, an older coolant, as it claims studies have shown that the new gas catches fire more easily and puts cars at a greater risk of explosion in case of a crash.

The makers of R1234yf reject Daimler’s claims but in Germany, the auto giant was given special permission to keep using the older gas.

Daimler says it will persist with the older product with the hope that “in the next few years” a safer version will be available.

No country besides France has raised an objection to the continued use of R134a, the Daimler spokesman said.

But last month the European Commission, the EU’s executive branch, threatened sanctions against German carmakers for using the refrigerant.

The Commission officially notified Germany of its objections to the continued use of the polluting gas, giving Berlin until September to comply.

source: interaksyon.com