Yahoo Finance European car makers rev up results as industry steps up a gear
Three of Europe’s biggest car makers have reported accelerating sales as the global car market gets into gear.
Mercedes owner Daimler led the pack, reporting an 87pc surge in operating profit in the first quarter to €4bn (£3.4bn), helped by rising demand for its luxury cars. Revenues were 11pc higher at €38.8bn.
Consensus forecasts for Daimler’s full-year earnings before interest and tax are an 8.5pc increase to €14bn - a prediction backed up by the company saying it is looking at a “significant” rise, compared with its previous forecast of a slight gain.
This comes despite Daimler raising spending on research and development by almost a quarter to €2.1bn in the first three months as it tries to keep pace with electric vehicles and autonomous driving.
Fiat, which also owns the Jeep, Alfa Romeo and Chrysler marques, was not far behind, with revenues rising 4pc to €27.7bn and net profit 34pc higher at €641m.
The company held its full-year guidance for revenues at between €115bn and €120bn, with net profit expected to come in at €3bn.
Peugeot and Citroen owner PSA Group also posted stronger figures for the quarter, with sales rising 4.9pc to €13.6bn.
PSA has been losing market share to rivals across Europe recently and earlier this year the company agreed a €2.2bn deal to buy General Motors’ Vauxhall and Opel brands as it bids to shore up its position.
The sale will make it the second-largest car company in Europe after VW Group, leapfrogging Renault, in a move PSA boss Carlos Tavares hopes will help arrest its decline.
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