Daimler reports record earnings despite "dieselgate"

BERLIN, Feb. 1 (Xinhua) -- German car maker Daimler released record earnings figures for 2017 on Thursday despite its implication in the damaging ongoing "dieselgate" and "cartel" scandals.

The Stuttgart-based firm sold "more vehicles than ever", resulting in its highest-to-date annual revenue and profits. Daimler achieved a rise in revenue to a total 164 billion euros (205 billion U.S. dollars), up 7 percent, and recorded earnings before profits and taxes (EBIT) of 14.7 billion euros, an increase of 14 percent, in 2017.

Net income grew even faster, by 23 percent, to 10.5 billion euros where Daimler profited from the recent U.S. corporate tax reform.

Daimler's management pointed to a strong performance of its trucks division as a key factor which contributed to the positive operative result. Sales at the car maker's flagship brand Mercedes-Benz slowed markedly during the fourth quarter (Q4) of 2017. However, the overall annual figures remained solid thanks to strong demand from China and a generally buoyant market for luxury special utility vehicles (SUVs).

A total of 2.29 million Mercedes-Benz cars, excluding smart cars, were sold in 2017, marking an annual increase of 9.9 percent.

Looking to the future, Daimler highlighted that additional costs to develop new technologies, such as electric and autonomous vehicles, would likely weigh on its core business in 2018. Additionally, the company is currently involved in a radical organizational restructuring process which will create three independent operational entities -- passenger vehicles and vans, trucks and buses, and financial services -- under Daimler's corporate umbrella.

Daimler chief executive officer (CEO) Dieter Zetsche refused to comment in detail on recent revelations of controversial animal and human experiments funded by Daimler and other German car makers at the presentation of the earnings figures, merely vowing to "fully investigate the proceedings."

So far Daimler has suspended one employee in connection with the widely-publicized tests, which constitutes the latest episode of the long-standing "dieselgate" scandal.

Zetsche admitted that ongoing debates in Germany and abroad showed "how important a shared understanding of moral behavior across the entire company is".

Despite strong annual profit and revenue growth, Daimler shares at the German DAX stock market fell on Thursday by up to 3.3 percent after the publication of the earnings figures. Enditem