Daimler profits double on Mercedes sales gain
German automaker Daimler AG says net profit doubled in the first three months of the year as the new version of the company’s Mercedes-Benz E-Class sedan and its SUV lineup boosted sales.
The Stuttgart-based company raised its profit outlook for the year, with CEO Dieter Zetsche saying in a statement Wednesday that earnings and sales would “significantly increase.” The earlier prediction was for a slight increase.
Net profit rose to 2.80 billion euros ($3 billion) from 1.40 billion euros in the year-earlier quarter. Revenue rose 11 percent to 38.77 billion euros.
The net profit figure beat expectations for 2.4 billion euros as compiled by financial information provider FactSet.
McDonald’s new Big Macs boost profits but sales dip
McDonald’s said new food offerings and cheap drinks drove its first-quarter earnings growth but it believes technology in the form of delivery, mobile ordering and in-store kiosks are the keys to winning back lost customers.
The world’s largest burger chain said its delivery partnership with UberEats in Florida is going well, and McDonald’s CEO Steve Easterbrook said the company will expand delivery to “a number of U.S. cities with UberEats this quarter.”
New Big Mac sizes also are drawing in more customers and helping to raise the average customer sale, executives said. The burger giant said U.S. same-store sales, or sales at restaurants open at least 13 months, rose 1.7 percent. The company said its first-quarter profit rose 8 percent to $1.21 billion, or $1.47 per share, compared with $1.12 billion, or $1.25 per share, in the first quarter of 2016.
Revenue fell 4 percent to $5.68 billion, however.
McDonald’s was able to post a higher profit despite lower sales through significant cost reductions. It reduced overall operating costs and expenses by 12 percent, driven by significant cuts in company-operated restaurant expenses.
PepsiCo tops forecasts with quarterly earnings
PepsiCo Inc. on Wednesday reported first-quarter earnings of $1.32 billion, or 92 cents per share. Earnings, adjusted for restructuring costs and non-recurring costs, were 94 cents per share, which beat analysts forecasts of earnings of 91 cents per share.
The food and beverage company posted revenue of $12.05 billion in the period, also topping Street forecasts. Five analysts surveyed by Zacks expected $11.97 billion. PepsiCo expects full-year earnings to be $5.09 per share.
Fiat Chrysler profit up on European sales
Carmaker Fiat Chrysler Automobiles reported Wednesday that its first-quarter earnings rose by more than a third, with all regions contributing except Latin America, which posted losses.
The Italian-American carmaker made a net profit of 641 million euros ($700 million) in the first three months of 2017, up 34 percent from 478 million euros in the same period last year.
The carmaker, formed from the 2014 merger of Fiat and Chrysler, confirmed its 2017 targets, including net profit of 3 billion euros on revenues of 115 billion-120 billion euros. Shares in the company closed up 9 percent to 10.60 euros in Milan trading.
Fiat Chrysler said adjusted earnings before interest and taxes rose by 85 percent to 178 million euros in Europe, with the Fiat Tipo family and the Alfa Romeo Giulia and Stelvio SUV driving higher shipments, and by 75 percent to 21 million euros in Asia due to a joint venture in China.