Daimler posts 30% rise in profits

German car manufacturer Daimler has posted a 30% increase in the second quarter profits as sales of its luxury Mercedes brand boomed.

The net profit of the firm during the last quarter was at 1.7 billion euro (£1.5 billion), up from 1.3 billion euro (£1.1 billion) during the corresponding three months of 2010.

Daimler has reported a rise in its revenues by 5% to 26.3 billion euro (£23.3 billion).

The earnings of the firm during the last three months reached 1.51 euro (£1.34) per share, higher than the previously predicted 1.43 euro (£1.26).

Mercedes posted a 14% increase in its second-quarter operating earnings to a record 1.56 billion euro (£1.4 billion).

With higher earnings recorded in four of Daimler's five divisions, the firm now predicts its overall operating earnings for 2011 to grow more positively than previously expected and exceed the figures for 2010.

In addition to the sales recovery in the US, strong demand in emerging markets such as China helped improve earnings at Daimler and German competitors BMW and Volkswagen in recent quarters.

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