New Model Sweet Spot Expected In 2013/2014
By most measures, Mercedes is doing exceptionally well. Unfortunately Mercedes plays in a league with BMW and Audi, so it is coming in third most of the time.
In the first quarter, Mercedes parent Daimler’s earnings before interest and taxes (EBIT) rose 4.9 per cent to €2.13 billion compared with the same period last year. Perfectly adequate, you might say. But Mercedes profit margin fell to 8.4 per cent from 9.3 per cent, putting it way behind Audi’s 11.4 per cent. BMW has yet to report, but don’t be surprised if it beats Mercedes too.
“Daimler is in the unhelpful position of producing excellent returns, just not as excellent as its German peers,” said Citigroup Global Markets analyst Harald Hendrikse.
Hendrikse sad Daimler is in a transition period currently, with a large number of new vehicles planned, but with the model sweet spot not expected until 2013/2014.
“Daimler continues to suffer weaker momentum than its major European peers,” Hendrikse said.
Neil Winton – May 1, 2012
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