EARNINGS : German Car Makers Post Gains
Two of West Germany’s leading car makers, Daimler-Benz AG and Volkswagen AG, today reported higher profits for the first half of 1990 despite a weaker auto market.
At a time when many auto makers are seeing their earnings squeezed, Daimler and VW both managed good interim results.
Daimler, maker of Mercedes-Benz cars, said its first-half group net profit rose 1.3%, to $535 million, from $528 million in the same 1989 period. Sales for the half year rose 5.3%.
The company said it expects to reach its full-year sales target of $54 billion. But it added that the mark’s recent strong gains against the dollar and the yen are having an adverse effect on results.
Volkswagen said its group net profit rose 6.2%, to $273 million, in the first six months of 1990, while sales rose 4.3%, to $22.44 billion.