Daimler revs up forecasts after powerful first quarter

(MENAFN- AFP) World-leading luxury carmaker Daimler on Wednesday lifted its forecasts for 2017 after a roaring start to the year that outpaced analysts' expectations.

At 2.7 billion euros ($2.95 billion), the German firm's net profit doubled between January and March compared with the first quarter last year, on revenues up 11 percent at 38.8 billion euros.

Analysts had forecast significantly lower net profits of 2.4 billion euros.

Daimler's success was powered by a 14-percent increase in sales of its Mercedes-Benz and Smart cars, which account for more than half of its revenue.

Mercedes buyers were snapping up a revamped E-Class and the manufacturer's range of SUVs.

Operating, or underlying profit before interest and taxes was up 87 percent compared with the start of 2016, at just over 4.0 billion euros -- a figure Daimler revealed earlier this month in preliminary results.

The carmaker had several windfalls to thank for big positive impacts on its profits, including a 183-million-euro payout from its investment in high-tech mapping firm Here after new investors climbed aboard alongside rivals BMW and Audi.

For the full year 2017, Daimler expects that "group revenue will increase significantly," as will its operating profit -- where before it forecast only a slight increase.

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