Daimler first quarter profit slumps despite gains at Mercedes

0 Comments | AFP, April, 2008

FRANKFURT (AFP) — German auto and truck giant Daimler said Tuesday that first quarter net profit fell 30 percent despite a strong performance at its flagship Mercedes-Benz brand.

Overall group net profit slumped to 1.3 billion euros (2.0 billion dollars), while operating profit shed 40 percent to 1.97 billion euros, owing in large part to an unfavourable comparison with the first quarter of 2007 when the sale of shares in the aerospace group EADS had boosted Daimler's earnings.

This year, the sale of property on the Potsdamer Platz in Berlin failed to make up the difference and Daimler also had to book 491 million euros in charges stemming from the sale of its former US division Chrysler.

Daimler sales, meanwhile, were steady at 23.5 billion euros, a...