OREANDA-NEWS. Daimler AG provided impressive confirmation of its successful course in the third quarter of 2014 with strong growth in earnings as well as new record figures for unit sales and revenue. The Daimler Group sold a total of 637,400 cars and commercial vehicles worldwide, 7% more than in the third quarter of last year. Mercedes-Benz Cars made a major contribution with the highest-ever quarterly unit sales in the company's history.

The Group's third-quarter revenue of EUR 33.1 billion was 10% above the prior-year level; adjusted for exchange-rate effects, revenue increased by 11%. Due to the favorable development of business in all divisions, EBIT from the ongoing business improved to EUR 2,787 million and was thus substantially higher than in the prior-year period (Q3 2013: EUR 2,300 million). Net profit also increased significantly to EUR 2,821 million compared with EUR 1,897 million in the third quarter of last year.

"Our strategy is paying off. We are growing profitably and look to the future with optimism also beyond the full year," stated Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. "In all our divisions, both the product offensives and the efficiency programs are taking effect. We are confident that we will achieve the targets we have set on a sustained basis."

Including special items, EBIT for the third quarter amounted to EUR 3,732 million (Q3 2013: EUR 2,231 million). In particular, the product mix at Mercedes-Benz Cars and the increasing impact of the efficiency measures that have been implemented at all divisions had a positive effect on operating profit. Foreign exchange rates had a slightly negative impact on earnings, however. The third quarter of 2014 was particularly influenced by the sale of the shares in Rolls-Royce Power Systems Holding GmbH (RRPSH). This resulted in a gain of EUR 1,006 million, which is presented in the reconciliation.

The income-tax expense of EUR 760 million is EUR 585 million higher than in the third quarter of last year. In the third quarter of 2014, a gain was recognized on the sale of the RRPSH shares that was largely tax free. In the prior-year period, tax benefits related to the tax assessment of previous years led to the relatively low income-tax expense. Net profit of EUR 86 million is attributable to non-controlling interest (Q3 2013: EUR 61 million) and net profit of EUR 2,735 million is attributable to the shareholders of Daimler AG (Q3 2013: EUR 1,836 million); earnings per share therefore amount to EUR 2.56 (Q3 2013: EUR 1.72).

The net liquidity of the industrial business amounted to EUR 17.9 billion at the end of the reporting period (end of 2013: EUR 13.8 billion). Daimler's industrial business generated a free cash flow of approximately EUR 5.4 billion in the third quarter of 2014 (Q3 2013: approximately EUR 1.6 billion). Excluding the effects of acquisitions and disposals of equity interests, the free cash flow of the industrial business amounted to approximately EUR 2.9 billion in the third quarter (Q3 2013: approximately EUR 1.6 billion).

At the end of the third quarter of 2014, Daimler employed 282,302 people worldwide (end of 2013: 274,616). Of that total, 170,417 were employed in Germany (end of 2013: 167,447). From today's perspective, Daimler assumes that the number of employees worldwide will slightly increase compared with the end of 2013.