Daimler AG

Mercedes-Benz luxury cars fuel fat profits at Daimler

German automaker Daimler AG said Thursday that its fourth-quarter net profit jumped 18 percent — but offered only a modest outlook for future earnings as it prepares to spend heavily on new models and advanced technologies such as autonomous driving.

Net profit for the quarter hit 2.2 billion euros ($2.4 billion), boosted by strong sales of new SUVs under the company's luxury Mercedes-Benz brand. Group revenue rose 1 percent to 41 billion euros.

For the full year, Daimler made 8.78 billion euros net profit, up 1 percent from 2015.

CEO Dieter Zetsche said the company's strong profits equipped it to confront challenges from new technologies such as autonomous...