Mercedes Margin Disappoints as Spending Stifles Profit Gains

Daimler AG, the world’s third-largest maker of luxury vehicles, reported a first-quarter profit margin for the Mercedes cars division that came up short of expectations as it spends on new models.

Earnings before interest and taxes at the maker of the Mercedes-Benz S-Class luxury sedan were 7 percent of sales, narrower than some analysts forecast and trailing the 10.1 percent at Volkswagen AG’s Audi.