Daimler reported strong first-quarter earnings, driven by robust demand for Mercedes-Benz cars, particularly in China.
Group earnings before interest and tax were 5.75 billion euros ($6.9 billion) for the first three months, the company said in a preliminary earnings statement on Friday. That’s up from 617 million euros ($664 million) in the year-earlier period as the COVID-19 pandemic hit.
Daimler cited sales momentum in all major regions as well as cost cuts as helping growth.
“We continue to execute on our ambitions in a very encouraging market environment,” CEO Ola Kaellenius said in the statement. “Our systematic efforts to lower the break-even point of the company are becoming increasingly visible.”
Mercedes’ first-quarter global car sales climbed 22 percent to 581,270 units, with a 60 percent jump in China deliveries, the automaker said earlier this month.
A year after one of the bleakest period in decades for luxury German automakers, business this time of year has never been better. Both Mercedes and BMW reported record first-quarter deliveries as industrywide sales were strong in the U.S. and Europe.
Automakers’ concerns have shifted dramatically from demand to supply issues, with the global chip shortage hampering production.
Daimler, which has remained largely unaffected so far, did not comment on the chip crunch.
Reuters contributed to this report