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Daimler 2007 profit rises
By MELISSA EDDY Associated Press Writer
Article Last Updated: 02/14/2008 04:32:16 AM PST

BERLIN—Daimler AG's profit rose to $5.83 billion in 2007 as demand for its upscale sedans and SUVs led to a surge in sales, the German automaker reported Thursday.

The maker of Mercedes-Benz, Smart and ultra-luxury Maybach models earned 4 billion euros last year. It was only a slight gain from 3.8 billion euros in 2006, due largely to a 2.2 billion euros ($3.21 billion) charge this year related to the spinoff of its U.S.-based Chrysler division in August, the company said.

Sales rose to 99.4 billion euros ($144.98 billion) from 99.2 billion euros, with 2.1 million automobiles sold globally.

Shares of the company rose 1.17 percent in early Frankfurt trading, before settling back to a 0.45 percent gain, to 54 euros ($78.76) in the afternoon.

For the fourth quarter of 2007, the company's profit jumped to 1.7 billion euros ($2.48 billion) from a net loss of 12 million euros in the quarter a year earlier, driven by strong earnings from the company's Mercedes-Benz and trucks units.

The company's Mercedes-Benz unit, which also produces the Smart and Maybach brands, reported a rise in earnings of 1.43 billion euros ($2.09 billion) for the quarter, up from 978 million euros for the same period in 2006.

Daimler's chief executive said the company expected future growth.

"We want to be not only more efficient, but to achieve profitable growth and tap new markets," CEO Dieter Zetsche told reporters.
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