Second-quarter Ebit at the Mercedes-Benz Cars unit, which includes the Smart brand, skyrocketed 58 percent to 2.23 billion euros, with a return on sales of 10.5 percent – way higher than the 7.9 percent figure seen previous year and beating a long-imposed threshold.

Revenue climbed 19 percent to 37.527 billion euros from 31.544 billion euros a year ago. Adjusted for the effects of exchange-rate changes, revenue growth amounted to 11%.

“There may be some short-term volatility”, Ola Kaellenius, board member for Mercedes-Benz Cars sales, told investor magazine Boerse Online.

The increase in sales and earnings was driven by strong growth in Western Europe, China and the U.S.

Although Daimler’s earnings beat forecasts, analysts had been expecting a stellar quarter from the German luxury vehicle maker as the company continues to roll out new models, especially the new C-Class sedan and stable of luxury compact cars. Daimler is part of a consortium of car makers that is believed to be close to buying Nokia Here, the digital mapping business of the Finnish telecommunications group. The Daimler group’s other unit, Mercedes-Benz vans, posted a 7 percent increase in sales to 81,600 vehicles sold.

Analysts cheered the results and shares rose 2.2 percent in early trading.

FRANKFURT Daimler (DAIGn.DE) Chief Executive Dieter Zetsche brushed off concerns about a slowdown in demand for passenger cars in China, saying that clients had been ordering 500 top-of-the-line Mercedes-Maybach limousines a month. Demand in China, the world’s biggest vehicle market, should grow again significantly and make by far the biggest contribution to global growth, while the United States market should also show solid development. Group EBIT from the ongoing business improved by a substantial 54% to 3.78 billion euros.

The stock gained 2.5 percent to 86.34 euros.