Daimler profits jump on EADS stake sale

Daimler reports Q2 net profit of $6 billion after selling stake in aerospace firm

Associated Press

FRANKFURT, Germany (AP) -- Automaker Daimler AG is reporting a big jump in net profit in the second quarter thanks to gains from selling its stake in aerospace firm EADS.

The company said Wednesday that net profit rose to €4.58 billion ($6.04 billion) from €1.56 billion in the same quarter a year before. Sales rose 3 percent to €29.7 billion.

The maker of luxury brand Mercedes saw a gain of €3.2 billion from disposing of its remaining stake in EADS, parent company of plane maker Airbus. Daimler made the move to concentrate better on its core auto business.

The flagship Mercedes-Benz Cars division, which also includes the Smart compact, saw operating earnings slip however due to a less profitable model mix and expenses for new technologies and vehicles.

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