Daimler Boosts 3rd Quarter Profits Despite Chip Supply Woes

German car and truck maker Daimler boosted profits in the third quarter, despite supply problems with integrated circuits, in figures released from its Stuttgart headquarters, Deutsche Presse-Agentur (dpa) reported.

Photo Insert: The iconic Mercedes-Benz insignia

Profit attributable to shareholders came in at 2.47 billion euros ($2.88 billion) for the quarter, up 21 percent on the same period last year. Turnover at 40.1 billion euros was slightly below last year's figure.

"We remain on track to meet our full-year targets thanks to a more robust business ... despite a challenging environment," Daimler chief financial officer Harald Wilhelm said.

"At the same time, we made substantial progress with our strategic agenda," Wilhelm said, pointing to the rollout of electric vehicles and laying the groundwork for scaled-up battery cell production with the intended stake in Automotive Cells Company (ACC), a European battery cell maker.

The chip shortage hit the Mercedes-Benz division, which sold 30 percent fewer cars. When utility vehicles are included, the fall in sales at Mercedes-Benz came in at around a quarter.

Daimler was able to cushion the effects by giving priority to its ranges with high margins, with the luxury models of the S-class and electrical vehicles seeing a rise in sales.

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