OREANDA-NEWS. Unit sales by Mercedes-Benz Cars increased by 9% to 431,000 vehicles in the third quarter of 2014; this means that the period under review was the quarter with the highest unit sales in the company's history.

The growth driver in Western Europe was the United Kingdom with an increase of 18%. In the United States, the biggest sales market, the division also set a new record with sales of 84,100 units (+5%). In China, Mercedes-Benz Cars continued along its successful path and increased its unit sales by 18% to 76,200 vehicles.

Revenue rose by 13% to EUR 18.7 billion. Mercedes-Benz Cars' third-quarter EBIT of EUR 1,584 million was significantly higher than the prior-year figure of EUR 1,200 million. The division's return on sales was 8.5% (Q3 2013: 7.3%).

The earnings development primarily reflects the ongoing growth in unit sales, especially in Asia, Europe and the United States. That growth was driven in particular by the S-Class and the expanded range of compact cars. Mercedes-Benz Cars achieved earnings growth also as a result of better pricing. Efficiency actions from the "Fit for Leadership" program also had a positive impact on earnings. There were negative effects on earnings from expenses for the enhancement of products' attractiveness, capacity expansions and advance expenditure for new technologies and vehicles, including impairments on investments in the area of alternative drive systems of EUR 30 million. Exchange-rate effects also had a slightly negative impact on earnings.

Unit sales by Daimler Trucks continued to be affected by differing market and sales developments in the various regions and were slightly higher than in the third quarter of last year at 125,600 units. Steady growth in demand for the division's products in the NAFTA region led to strong sales growth there of 25% to 43,900 units. In Western Europe, there was a negative impact from purchases being brought forward to last year because of the new Euro VI emission regulations that came into force in 2014. Unit sales in the region of 14,800 vehicles were 11% below the prior-year level. In Latin America, sales decreased due to generally low demand by 23% to 12,500 units, at the same time the division increased its market share. The number of 38,600 trucks sold in Asia was 6% lower than in the prior-year quarter. This was mainly the result of the sharp drop in demand in Indonesia, whereas unit sales developed positively in Japan and India.

Revenue increased by 6% to EUR 8.5 billion and EBIT of EUR 588 million was also higher than the prior-year level (Q3 2013: EUR 522 million). The division's return on sales was 6.9% (Q3 2013: 6.5%). The main driver of the earnings growth was the ongoing very positive development of unit sales in the NAFTA region. The successful implementation of the "Daimler Trucks #1" growth and efficiency program also had a positive impact on earnings. However, there were negative effects from lower unit sales in Latin America and Europe and from currency translation. Workforce adjustments in the context of ongoing optimization programs in Germany and Brazil resulted in expenses of EUR 30 million. Additionally, due to the sale of the stake in RRPSH its contribution to earnings ceased.

Mercedes-Benz Vans increased its third-quarter unit sales by 11% to 72,200 vehicles. The division achieved growth across all its model series in the reporting period. In Western Europe, Mercedes-Benz Vans once again achieved double-digit growth in unit sales (+19%); in the United States, the successful course was continued with growth of 18%.

The division's revenue of EUR 2.5 billion and operating profit of EUR 176 million were also significantly higher than the prior-year figures (Q3 2013: EUR 2.3 billion and EUR 152 million respectively). The return on sales increased slightly from 6.7% to 7.0%. Earnings in the third quarter reflect the very positive development of unit sales, especially in Europe and the NAFTA region. EBIT was negatively affected, however, by research and development expenditure for new products and by expenses for the market launch of the new Vito.

Daimler Buses' worldwide unit sales of 8,600 buses and bus chassis in the third quarter were significantly lower than the number of 9,600 units sold in the same period of last year. The decrease in unit sales primarily reflects the weaker business with bus chassis in Latin America. However, the business with complete buses in Western Europe grew once again compared with the prior-year period.

As a result of decreased unit sales in Latin America, Daimler Buses' revenue of EUR 1.0 billion was also lower than in the third quarter of 2013 (Q3 2013: EUR 1.1 billion). The division's EBIT of EUR 64 million was above the prior-year figure (Q3 2013: EUR 59 million) and its return on sales increased from 5.2% to 6.2%. The positive business development, a favorable product mix and further efficiency progress in Western Europe more than offset the decreases in earnings in Latin America. Despite the difficult economic situation in Argentina and Brazil and the declining market in Turkey, earnings improved once again compared with the very strong prior-year quarter. Significant positive exchange-rate developments also contributed to third-quarter earnings.