UPDATE 1-Daimler doubles profit outlook for Mercedes unit

* Sees EBIT of 2.5-3 bln euros for Mercedes cars business

* Previously expected EBIT of more than 1.5 bln euros

* Group Q1 EBIT 1.2 bln euros
(Adds previous earnings expectations)

FRANKFURT, April 19 (BestGrowthStock) – Luxury carmaker Daimler
(DAIGn.DE: ) said it might earn twice as much as it previously
forecast from its Mercedes-Benz passenger car business this
year after lively demand for its flagship product in the first
three months of the year.

Earnings before interest and tax from ongoing business in
the Mercedes division will reach 2.5 billion euros ($3.5
billion) to 3 billion euros in 2010, the company said on Monday
after markets were closed in Frankfurt.

Daimler previously had forecast an EBIT of more than 1.5
billion euros for this year.

In its trucks business, earnings will reach 500 million
euros to 700 million euros from ongoing business, as much as
three times more than the 200 million euros it had forecast in

Both divisions were loss making last year.

The company posted EBIT of 1.2 billion euros for the whole
group in the first quarter, reversing a 1.4 billion euro loss
from the first quarter 2009, it said.

Mercedes had been losing out both to larger rival BMW
(BMWG.DE: ) and its fleet of more fuel-efficient cars, as well as
to premium carmaker Audi, whose high profitability is due in
part to sharing costs with parent Volkswagen (VOWG_p.DE: ).
(Writing by Peter Dinkloh)

UPDATE 1-Daimler doubles profit outlook for Mercedes unit