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BUSINESS

Daimler doubles profits thanks to EADS sale

German automaker Daimler announced on Wednesday that its profits doubled in the second quarter, propelled in no small part by one-off gains from the sale of its stake in aerospace giant EADS.

Daimler doubles profits thanks to EADS sale
Photo: DPA

Daimler said in its interim report that net profit doubled to €2.8 billion in the period from April to June from €1.47 billion a year earlier.

As already reported earlier this month, underlying or operating profit, as measured by earnings before interest and tax (EBIT), amounted to €5.24 billion compared with €2.268 billion a year earlier.

And revenues rose by 2.8 percent to €29.69 billion.

Daimler said the second-quarter figures “were boosted by a gain totaling €3.2 billion related to the re-measurement and to the sale of the remaining EADS shares.”

“As we previously announced, our earnings in the second quarter improved significantly compared with the first three months of the year and exceeded market expectations,” said chief executive Dieter Zetsche.

“This represents progress in our earnings development, but no cause for complacency. We will continue to work hard on achieving our goals,” Zetsche

said.

On July 12, Daimler had said it was sticking to its full-year profit forecasts.

AFP/kkf

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BUSINESS

France’s EDF hails €10billion profit, despite huge UK nuclear charge

French energy giant EDF has unveiled net profit of €10billion and cut its massive debt by increasing nuclear production after problems forced some plants offline.

France's EDF hails €10billion profit, despite huge UK nuclear charge

EDF hailed an “exceptional” year after its loss of €17.9billion in 2022.

Sales slipped 2.6 percent to €139.7billion , but the group managed to slice debt by €10billion euros to €54.4billion.

EDF said however that it had booked a €12.9 billion depreciation linked to difficulties at its Hinkley Point nuclear plant in Britain.

The charge includes €11.2 billion for Hinkley Point assets and €1.7billion at its British subsidiary, EDF Energy, the group explained.

EDF announced last month a fresh delay and additional costs for the giant project hit by repeated cost overruns.

“The year was marked by many events, in particular by the recovery of production and the company’s mobilisation around production recovery,” CEO Luc Remont told reporters.

EDF put its strong showing down to a strong operational performance, notably a significant increase in nuclear generation in France at a time of historically high prices.

That followed a drop in nuclear output in France in 2022. The group had to deal with stress corrosion problems at some reactors while also facing government orders to limit price rises.

The French reactors last year produced around 320.4 TWh, in the upper range of expectations.

Nuclear production had slid back in 2022 to 279 TWh, its lowest level in three decades, because of the corrosion problems and maintenance changes after
the Covid-19 pandemic.

Hinkley Point C is one of a small number of European Pressurised Reactors (EPRs) worldwide, an EDF-led design that has been plagued by cost overruns
running into billions of euros and years of construction delays.

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