Daimler-Benz Reports Profit

09/03/96

The Associated Press reported that Daimler-Benz AG announced its return to profit during the first half of this year. The Stuttgart based German company credited its recovery to restructuring and a renewed focus on core business.

The company earned 782 million marks ($532 million) in 1996's first half, compared to its loss of 1.62 billion marks ($1.1 billion) for the same period during the previous year. Daimler-Benz's sales were up 1.3 percent to 49.1 billion marks ($33.4 billion).

Daimler-Benz chairman Juergen Schrempp told a London news conference, "By reducing the group from 35 to 25 highly focused business units, we are already a leaner, more productive and more profitable company."

Schrempp hinted that the company may resume paying annual dividends in 1996. It suspended dividends last year after posting record losses of 5.7 billion marks ($3.87 billion). In response to the question of dividends, Schrempp said, "if full-year results are where we they think they'll be, the answer is obvious."

For year's first half, the company said operating profits rose 3 percent to 1.4 billion marks ($95 billion) for its Mercedes-Benz car and truck division. Mercedes-Benz sales rose 6 percent to 37.8 billion marks ($25.7 billion) from 35.6 billion ($24.2 billion in the first half of last year.

Daimler, one of the world's largest industrial conglomerates, owns businesses that include the Mercedes-Benz vehicles manufacturing unit, Daimler-Benz Aerospace, financial services unit Daimler-Benz InterServices, and some remaining businesses units from the breakup of its AEG electronics subsidiary.

Paul Dever -- The Auto Channel