OREANDA-NEWS. Daimler AG (ticker symbol DAI) started the year 2014 with significant growth in unit sales, revenue and earnings. Worldwide, the Group sold 565,800 cars and commercial vehicles in the first quarter - more than ever before - and thus increased its unit sales by 13% compared with the prior-year period. Despite unfavourable exchange rate developments, revenue increased by 13% to EUR 29.5 billion. Group EBIT rose to EUR 1,787 million (Q1 2013: EUR 917 million). Net profit reached EUR 1,086 million (Q1 2013: EUR 564 million), and thus nearly doubled compared with the prior-year period.

"Our strategy is paying off; our investments are bearing fruit," stated Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. "We made a good start to this year, as expected. As the year progresses, we will continue working systematically on our profitable growth path."

The significant increase in earnings at the beginning of the year was influenced by the very positive development of unit sales and revenue, a better model mix and further efficiency gains at all divisions. Foreign exchange rates had a negative impact on EBIT in the first quarter. The hedging of the investment in Tesla and the disposal of the shares in Rolls-Royce Power Systems Holding GmbH (RRPSH) resulted in expenses of EUR 161 million and EUR 118 million respectively. Without those two special items, operating profit would have more than doubled compared with the prior-year period. EBIT from the ongoing business increased to EUR 2,072 million (Q1 2013: EUR 949 million). The sale of the shares in Rolls-Royce Power Systems Holding and the changeover from the equity-method measurement of the shares in Tesla to first-time fair-value measurement at the reference date March 31, 2014, will lead to a significant contribution to earnings of approximately EUR 1.7 billion.

The net interest expense decreased slightly, partially due to the expiry of refinancing at high interest rates. The income-tax expense of EUR 564 million recognized in the first quarter was EUR 368 million higher than in the prior-year period, primarily due to the increased profit before income taxes. Net profit of EUR 1,027 million is attributable to the shareholders of Daimler AG (Q1 2013: EUR 536 million); earnings per share increased to EUR 0.96 (Q1 2013: EUR 0.50).

The Daimler Group once again undertook refinancing at attractive conditions in the international money and capital markets in the first quarter of 2014. In January 2014, Daimler AG issued a bond in the euro market with a maturity of eight years and a volume of EUR 750 million. In March, Daimler Finance North America LLC issued bonds in the US capital market with maturities of three and seven years and a total volume of USD 2.15 billion.

And in China, Daimler was the first foreign company to issue a renminbi bond. This once again underscores the importance Daimler places on the Chinese market and continues its strategy of covering its financing requirements locally wherever possible. The net liquidity of the industrial business amounted to EUR 14.5 billion at the end of the first quarter (end of 2013: EUR 13.8 billion). The free cash flow of the industrial business developed well and increased by EUR 1.8 billion to €0.7 billion. The improvement was primarily due to the positive contributions to earnings from the automotive divisions.

"The growth offensives and efficiency programs are taking effect and will be systematically continued," stated Bodo Uebber, Member of the Board of Management of Daimler AG responsible for Finance & Controlling and Financial Services. "Due to the currently volatile environment, we are monitoring the sales and finance markets very carefully. With our liquid resources, we are well prepared for fluctuations."

At the end of this March, Daimler employed 276,322 people worldwide (end of Q1 2013: 274,555). Of that total, 167,746 were employed in Germany (end of Q1 2013: 166,265). From today's perspective, the company assumes that the number of employees worldwide will remain stable compared with the end of 2013.