Daimler Raises Earnings Forecast on China Auto Sales Rebound

  • Carmaker now sees Ebit at prior-year level, from below before
  • German firm navigated the Covid-19 pandemic better than feared
Photographer: Qilai Shen/Bloomberg
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Daimler AG improved its full-year profit forecast after earnings bounced back last quarter as it posted robust sales in China and cost cuts started to bear fruit at the maker of Mercedes-Benz luxury cars.

Daimler now expects earnings before interest and taxes to match the prior-year level, after previously forecasting a drop. The Stuttgart, Germany-based manufacturer anticipates markedly higher industrial free cash flow but also warned that group revenue will decline significantly because of the pandemic.